A smartphone with the TikTok icon against a background of the Chinese flag.

Canada’s new TikTok compromise fails to resolve questions of ownership and national security

Written by Philip Mai and Anatoliy Gruzd, Toronto Metropolitan University. Originally published in The Conversation.
TikTok’s parent company, ByteDance, is based in China and Chinese national security laws can compel companies to co-operate with state authorities. (Unsplash/Solen Feyissa)

The Canadian government has reached an agreement with the social media platform TikTok after years of debate over the app’s data practices, particularly those affecting young users. The deal allows TikTok to continue operating in Canada under tighter oversight rather than facing a shutdown.

As social media researchers at the Social Media Lab at Toronto Metropolitan University, we’ve always paid close attention to the state of social media in Canada. We have followed the TikTok ban saga closely since early 2020, when United States President Donald Trump first tried to ban the platform, long before he later came out in favour of keeping it.

While the new agreement does move towards greater oversight of TikTok, major concerns remain. TikTok’s parent company, ByteDance, is based in China and Chinese national security laws can compel companies to co-operate with state authorities. This underlying risk sits beyond the reach of Canada’s safeguards.

The agreement follows a new national security review that reversed an earlier conclusion pointing toward closure of TikTok’s Canadian operations. Instead of a ban, the federal government has chosen a regulatory approach, one that keeps the app available while imposing legally binding conditions. The deal reduces some risks, but it does not resolve deeper questions about ownership, data flows and national security.

So what has TikTok agreed to? And what will the millions of Canadian users, creators, advertisers and cultural groups that rely on the platform notice?

Stronger protections for youth and minors

Under the new rules, TikTok must strengthen its protection of Canadian user data. This includes creating a security “gateway” to control access to that data, adopting privacy-enhancing technologies and allowing independent third-party monitoring to verify how data is handled.

TikTok also committed to stronger protections for minors and youth, a key concern driving the government’s review.

Teenage girls sit on concrete steps together, entranced by smartphones.
A joint investigation by the federal privacy commissioner and counterparts in Québec, B.C. and Alberta in 2025 found that TikTok had collected sensitive information from hundreds of thousands of Canadians under 13 years old. (Getty/Unsplash+) (Unsplash+/Pocstock)

For everyday users, the focus on youth protection is likely to be the most visible change. Stricter age limits could affect livestreaming. Gift features may be more restricted for younger users. Content involving minors is likely to face stricter moderation.

Canadian creators will also feel the impact. Those with audiences largely made up of teenagers may face tighter moderation or additional eligibility checks for certain features and monetization tools. Sponsors may also ask more detailed questions about audience demographics as brands become more cautious about youth-focused content.

Many changes will happen behind the scenes. As TikTok Canada adjusts to the new requirements, its verification processes, advertising tools and moderation systems are expected to become more demanding.

As the government now requires stronger protection of Canadian user data, people who earn money on the platform may encounter extra steps. These may include stricter identity checks, added requirements for business accounts or ad payments and clearer information about where Canadian user data is stored.

Privacy Commissioner of Canada Philippe Dufresne speaks in front of a Canadian flag.
Privacy Commissioner of Canada Philippe Dufresne speaks during a news conference on the findings of joint investigation into TikTok at the National Press Theatre in Ottawa on Sept. 23, 2025. THE CANADIAN PRESS/Spencer Colby

Does this make TikTok safer? Compared to what existed before, the agreement does move toward greater oversight. Independent monitoring, if carried out properly, gives the government some visibility into TikTok’s data practices and the commitments are legally binding rather than voluntary.

Canadian data can still leave Canada

Enforcement details are still unclear. The government has said it will appoint an independent monitor, but has not named the monitor, explained how audits will work or detailed what penalties TikTok would face for failing to comply. Without clear consequences, oversight could prove weaker in practice than it appears on paper.

The agreement also stops short of requiring full data localization. Canadian user data does not have to stay entirely within the country. Although technical controls may limit access, data can still move through systems outside Canada. This leaves some exposure to unauthorized access or foreign influence.

Viral TikTok musician and singer, Mr. Fantasy dances on a red carpet.
Viral TikTok musician and singer, Mr. Fantasy, at the TikTok Awards in December 2025 at the Hollywood Palladium in Los Angeles. (Andrew Park/Invision/AP)

Another gap is research access. The deal does not require TikTok to share data with vetted Canadian public-interest researchers, like academics or journalists. Currently, researchers from Canada are not qualified for access to the TikTok application programming interface (API), while their counterparts in the European Union and U.S. are. This makes it harder for Canadian researchers to independently study the platform’s impact on Canadian users.

A cautious compromise

Overall, the agreement reflects a compromise. Canada avoided a disruptive ban; TikTok accepted tighter rules to keep operating in a key market. The deal reduces some risks, but it does not resolve deeper questions about ownership, data flows and national security.

Those tensions are likely to resurface as Canada continues to grapple with how to regulate global platforms that play an outsized role in everyday life.

The Conversation