Opinion piece by Philip Mai, Co-director and Senior Researcher, Social Media Lab, Toronto Metropolitan University; and Anatoliy Gruzd, Professor and Canada Research Chair in Privacy-Preserving Digital Technologies, Toronto Metropolitan University.

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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.

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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.

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Under the new rules, TikTok must strengthen its protection of Canadian user data … TikTok also committed to stronger protections for minors and youth, a key concern driving the government’s review.

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Compared to what existed before, the agreement does move toward greater oversight … [but] 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.

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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.