Policy Brief No. 221 — January 2026
Rethinking TikTok Regulation in Canada Matt Malone and Oren Tsur
Key Points → Since its launch in 2017, TikTok has become an enormously popular app in Canada — and the source of many privacy and security concerns. → Recently, the Canadian federal government restricted the operation of TikTok Technology Canada Inc., based on the findings of an undisclosed national security review taken under the auspices of the Investment Canada Act (ICA), while still permitting the app run by TikTok Pte. Ltd. to collect, use and analyze Canadians’ data. This dual approach overlooks key opportunities for Canada to strengthen its digital sovereignty with respect to the identified concerns. → There are four forms of more effective regulation, including: text and data mining (TDM) exceptions; mandatory access to TikTok application programming interfaces (APIs); required disclosure of TikTok source code to the government; and stricter data localization requirements of data collected by the app.
The Unprecedented Popularity of TikTok In September 2025, several Canadian privacy regulators unveiled a long-awaited report on TikTok’s “collection, use and disclosure of the personal information of individuals in Canada.” That investigation revealed just how popular the app had become, with 14 million Canadian monthly users. It also noted that approximately 500,000 underage users — those below the age of 13 (and 14 in Quebec) — are removed from the app each year (412,241 in 2021; 506,363 in 2022; and 579,306 in 2023). Prior to their removal, those children are the focus of targeted ads and tailored content recommendations (Joint Investigation 2025). The investigation revealed how important government policy regarding the app is to many Canadians.