The federal cabinet ordered an assessment of the short video app’s Canadian operation under Investment Canada Act provisions about establishing new entities in the country. “We continue to cooperate with the government’s review of TikTok’s investment in Canada,” company spokesperson Michael Hughes said in a statement to The Logic, adding that the firm is committed to users’ safety and security. (The Canadian Press, The Logic)
Talking point: The Investment Canada Act gives the government the power to block transactions and order foreign firms to divest Canadian assets. Earlier this month, Ottawa signalled it was watching deal making in interactive digital media more closely, citing the potential for “hostile state-sponsored or influenced actors” to use apps to “propagate disinformation or manipulate information.” Across the border, policymakers are trying to force ByteDance to sell TikTok, with the threat of a U.S. app store ban. In response, the Chinese government accused the U.S. of “unfairly suppressing foreign companies.”