09 - TikTok Canada: What the Dissolution Means and How to Creators and Small Businesses Can Prepare for What’s Next
If you’ve been keeping an eye on the headlines, you’ve probably seen the news: TikTok has been ordered to shut down its Canadian operations. It’s the kind of story that makes you stop scrolling, because it’s not just about one app, it’s about how governments, businesses, and creators are navigating questions of data, influence, and digital power. For creators and businesses who use the platform to connect with audiences and drive sales, this kind of news can feel unsettling.
In this post, I’ll walk you through what’s happened so far, why it matters for anyone building a business on social media, and how you can start preparing for whatever comes next.
Background
In November 2024, the Government of Canada ordered TikTok Technology Canada Inc. to dissolve operations following a national security review. Since this order was announced by the government, TikTok executives have attempted to halt the dissolution, without much luck so far.
Though the topic I’m concerned with is the closure of TikTok’s Canadian arm, it’s impossible to not look south to the United States and what happened with TikTok there. Like in Canada, TikTok’s parent company has been under scrutiny by US lawmakers for some time. In the US, a possible nation-wide ban of TikTok has been on the table. Things escalated all the way to the US Supreme Court and TikTok went dark for a brief period in January.
The timeline below outlines what’s happened both in Canada and the US since 2023.
TikTok in North America: Key Events Timeline
2023
February: Canada bans TikTok on all government-issued devices.
September: Canada begins a national security review of TikTok’s operations.
2024
April 24: The US passes the Protecting Americans First Adversary-Controlled Applications Act (PAFACA), mandating TikTok's US sale by Jan 19, 2025.
November 6: Canada’s government orders the wind-up of TikTok Technology Canada Inc., citing national security risks under the Investment Canada Act. The app remains accessible to Canadians.
December 5–11: TikTok files an application for judicial review in the Federal Court (Vancouver), challenging the shutdown order. TikTok argues the decision could devastate hundreds of Canadian jobs and harm the local creator ecosystem.
December 6: A US appeals court upholds PAFACA, reinforcing the Jan 19 divestiture deadline. TikTok plans to appeal to the Supreme Court.
December 18: The US Supreme Court agrees to fast-track TikTok’s appeal on PAFACA.
January 2025
Jan 17: The Supreme Court rules PAFACA constitutional, allowing the law to take effect.
Jan 18–19: TikTok temporarily disappears from U.S. app stores and service, but is restored within hours after Trump signals an extension.
Jan 19–20: Trump signs an executive order granting an extension to April.
March–April 2025
TikTok confirms a legal challenge to Canada’s shutdown order, arguing the decision lacks "rational analysis."
April 4: Trump signs another 75-day extension, pushing the deadline to June 19.
June–September 2025
June 19: The U.S. grants a third extension, setting the new deadline at September 17, 2025.
Meanwhile, TikTok Canada halts funding for cultural initiatives like the Juno Awards, TIFF, and Indigenous creator accelerator programs due to the shutdown mandate.
With this timeline in mind, let’s dig into the differentiators between the Canadian and American approaches to dealing with TikTok.
Canada and the United States have both taken policy actions against TikTok, but for different reasons. In Canada, the shutdown order came under the Investment Canada Act, a law that allows the government to block or unwind foreign investments if they’re deemed a threat to national security. The government concluded that TikTok Canada’s operations in the country posed risks tied to data security and foreign influence, and ordered the dissolution of the corporate entity, but stopped short of banning the app itself.
By contrast, in the United States, the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA) doesn’t just target TikTok’s local entity, it goes after the app itself. The law requires TikTok’s parent company, ByteDance, to divest its U.S. operations or face a nationwide ban. In other words, Canada has focused on removing TikTok’s corporate footprint while leaving user access untouched, whereas the US is threatening to cut off the platform entirely unless ownership changes.
Canada’s approach adds a layer of complexity. Unlike the U.S., which is threatening to ban the app outright if ownership doesn’t change, Canada has kept the app live while dismantling the corporate infrastructure behind it. That means more than 14 million Canadians can still scroll, post, and build audiences on TikTok, but without a dedicated local office, the scaffolding that helped Canadian creators and businesses grow is disappearing.
Why it Matters
The TikTok application remains available to Canadian Creators and audiences can still use the app. However, we’re already seeing the fallout of the forced shutdown of TikTok Canada. Major shifts in how TikTok operates here have started to unfold, having lasting consequences in the livelihoods of Canadian creators, brands, and the broader creative economy.
Here’s why this change matters:
Elimination of local advocacy: With TikTok Canada gone, there will be no domestic team lobbying for Canadian creators, campaigns, or partnerships.
Investments in major cultural institutions like the Juno Awards and TIFF have been pulled. The National Screen Institute’s TikTok Accelerator for Indigenous Creators, which has supported nearly 400 participants since 2021, has been cut.
Ripple effect of U.S. policy: Without a local corporate office, the future of TikTok in Canada will depend much more on the direction that the US goes in.
For Creators
Loss of local amplification: Without TikTok Canada staff pushing regional campaigns, Canadian content has less chance of being boosted in the algorithm. Visibility may decline compared to U.S. or global creators.
Uncertainty in monetization: Local TikTok staff often connected creators to brand deals and sponsorships. Brand partnerships and user-generated content are still available to Canadians, however, without a Canadian office, creators may have more difficulty finding and negotiating such deals.
Reduced support networks: Before, creators could access TikTok training programs, networking events, and staff guidance. That layer of support may no longer be available.
For Small Businesses
Reduced Brand Visibility: Over 600,000 Canadian small and medium-sized businesses rely on the platform to reach audiences. Without local campaigns promoting Canadian entrepreneurship, their content could get buried in a global feed.
Fewer promotional opportunities: TikTok used to run business-focused initiatives (e.g., ad credits, workshops). Those investments in Canada may dry up.
Economic ripple effects: TikTok Canada was part of an ecosystem that poured funding into cultural and business growth. With sponsorships gone, institutions and entrepreneurs may not have access to similar resources.
For Culture & Communities
Cuts to cultural investment : Sponsorship withdrawals from TIFF, the Junos, and the Indigenous Creators Accelerator mean fewer resources to showcase Canadian talent.
Erosion of representation: Programs that spotlighted marginalized and underrepresented voices, helped bridge visibility gaps. Their absence risks silencing these perspectives.
With TikTok Canada shutting down, creators and small businesses are facing a new reality. Fewer algorithm boosts, canceled sponsorships, and the loss of cultural initiatives are already reshaping opportunities on the platform. Add in the ongoing uncertainty in the U.S., where a potential ban or forced divestiture looms, and it’s clear that relying solely on TikTok is increasingly risky. The question now isn’t just how will you use TikTok, but how will you prepare your business and audience if TikTok itself becomes unavailable?
Preparing for a World Without TikTok Canada (or without TikTok at All)
For Canadian creators and small businesses, TikTok’s uncertain future isn’t just a platform problem, it’s a business risk. Whether the issue is a dissolved Canadian office or an outright ban in the U.S., the lesson is the same: if your audience and income stream depend on a single platform, you’re vulnerable.
From a legal and business strategy perspective, here are a few ways to prepare:
Diversify Your Platforms
TikTok may be your strongest channel today, but invest in Instagram Reels, YouTube Shorts, and even LinkedIn (for B2B businesses). Diversification protects you from sudden policy shifts you can’t control.Own Your Audience
Social media platforms are “borrowed land.” Building an email list, membership group, or SMS list gives you a direct line to your audience. Create channels you own, something you can’t lose to a ban.Negotiate Smarter Partnerships
If you’re signing deals with sponsors or brands, ensure contracts don’t tie compensation exclusively to TikTok deliverables. Add clauses that give you flexibility to deliver content on other platforms if TikTok becomes inaccessible. Pitch proactively, Canadian brands may need you to initiate partnerships in the absence of TikTok Canada.Protect Your IP and Content
Your videos, scripts, and campaigns are your intellectual property. Make sure you’re saving them outside the app, and thinking about how to repurpose content across platforms. Preserve performance data as well, metrics, analytics, and especially demographic profiles of your audience. This information will help you target the same users if you shift to another platform.Plan For Contingencies
Just as companies build risk management plans, creators and small businesses should do the same. Ask yourself: If TikTok disappeared tomorrow, where would I connect with my audience? How would I fulfill sponsorship agreements? Having a plan reduces panic when disruptions come.
The truth is, the future of TikTok in North America, and even globally, is uncertain. Canada has already begun dismantling its local operations, the U.S. continues to push for divestiture or a potential ban, and other governments across Europe are scrutinizing the platform over data security and disinformation concerns. For creators, small businesses, and cultural institutions, this isn’t just abstract policy, it affects visibility, revenue streams, and the support systems they’ve relied on to grow.
The key takeaway? TikTok may still be a powerful tool, but relying on any single platform is increasingly risky. Diversifying your channels, owning your audience directly, protecting your intellectual property, and planning for contingencies are not just best practices, they’re essential strategies for staying resilient in a rapidly shifting social media landscape.
If you’re a creator or small business owner looking to future-proof your strategy, safeguard your content, and navigate uncertainty, now is the time to act. Let’s make sure your brand and business can thrive, no matter what happens with TikTok.
