TikTok is seeking discussions with Canadian officials regarding national security concerns that may lead to its shutdown in the country.

The company has not yet received a formal response from the government despite its outreach efforts.

TikTok has paused cultural spending in Canada following a November 2024 shutdown order, though it’s still available in app stores.

CEO Shou Zi Chew requested a meeting with Industry Minister Melanie Joly to avoid layoffs and halt the exit, warning of 350 job losses in Toronto and Vancouver.

To address similar security concerns in other countries, TikTok has implemented measures to protect user data, such as Project Texas in the US and Project Clover in the EU.

Steve de Eyre, TikTok’s director of government affairs for Canada, proposed a localized solution, tentatively called “Project Maple,” to meet Canada’s specific security needs.

The app, used by 14 million Canadians, stores data overseas and has paid C$340 million (US$248.2 million) in taxes in Canada from 2019 to 2024.

TikTok has filed a legal challenge against the shutdown order, but no timeline has been provided for its resolution.

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🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Data localization has become TikTok’s standard playbook for regulatory survival

TikTok’s attempt to develop a Canadian solution mirrors its established pattern of creating region-specific data security programs to address government concerns.

The company has already implemented “Project Texas” in the United States and “Project Clover” in Europe, each designed to establish local data storage and oversight mechanisms to prevent data from flowing to China 1.

These initiatives typically involve significant infrastructure investments, with TikTok spending over $1.2 billion annually on European data centers as part of Project Clover 2.

Despite these efforts, the effectiveness of such programs remains contested, with former employees claiming that data continued flowing to China even after Project Texas was implemented 1.

TikTok’s approach of creating country-specific “projects” represents a common strategy among global tech companies facing regulatory pressure, creating localized compliance frameworks while maintaining their core business model.

2️⃣ Canada’s “business shutdown but continued app access” represents a distinctive regulatory approach

The Canadian government’s order represents an unusual regulatory middle ground that targets TikTok’s corporate presence while allowing continued app usage.

Unlike India’s complete ban in 2019, which blocked the app entirely over concerns about youth protection, Canada is specifically shutting down TikTok’s corporate operations while allowing its 14 million Canadian users to continue accessing the service 3.

This approach differs from both comprehensive bans and the targeted restrictions on government devices seen in other Western countries, creating a new category of regulatory response 4.

By allowing the app to remain accessible while removing the local corporate entity, Canada creates a situation where, ironically, it loses “the accountability of having a TikTok entity within Canada’s legal jurisdiction,” as TikTok’s government affairs director noted.

The Canadian model demonstrates how governments are developing increasingly nuanced approaches to balance national security concerns with citizen access to popular platforms, potentially establishing a new regulatory template for other nations.

3️⃣ TikTok’s pattern of cross-border management creates persistent regulatory challenges

TikTok’s global challenges stem from its unique position as the first Chinese social media platform to achieve widespread international adoption, creating novel regulatory questions.

With over 500 million active users across 155 countries by 2019, TikTok represents China’s most successful social media export, valued at $75 billion and reaching 1 billion downloads by February 2019 5.

The platform’s history of content moderation policies that aligned with Chinese government interests, including restrictions on Tiananmen Square, Tibet, and Falun Gong content, has fueled concerns about potential foreign influence 67.

Despite TikTok’s assertions of independence from ByteDance, former employees have reported ongoing collaboration between US operations and Chinese executives, undermining claims of complete separation 1.

This persistent tension between TikTok’s Chinese ownership and its global operations creates regulatory challenges that appear resistant to technical solutions alone, as evidenced by continued skepticism even after significant investments in data security infrastructure.

Recent TikTok developments

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