TikTok Canada is standing firm in its decision to end sponsorships of several Canadian arts institutions while the federal government’s order to shut down the platform’s Canadian operations remains in place.

“This harmful and misguided order not only eliminates funding for investments in Canadian culture and content creators…but it also requires us to terminate hundreds of local jobs,” Steve de Eyre, director of public policy and government affairs for TikTok Canada, tells Media in Canada. “Minister Joly has an opportunity to pursue an alternative approach that will address security concerns and keep jobs and investment in Canada. We want to continue supporting the Canadian creator ecosystem and cultural sector.”

The November order cited national security concerns under the Investment Canada Act but stopped short of a full ban on the app’s use in Canada.

Innovation, Science and Economic Development (ISED) told MiC earlier this week that nothing has changed and declined to comment further.

Robin LeGassicke, chief transformation officer at Cairns Oneil, tells MiC it’s not surprising that TikTok Canada would look to remove spending from the market when the future is uncertain.

“It’s them being prudent with their budgets in advance of decisions that are currently being made and not fully in their control,” she says, but adds TikTok Canada’s decision to pull out of sponsorships “has no direct impact on our clients’ plans.”

Moving forward, LeGassicke advises that clients’ plans should include the necessary channels to achieve the desired impact – and in some cases that may still include TikTok. “We will always counsel clients to be agile and have the ability to shift budgets should they need to drive the greatest impact where their audiences and potential customers are.”

Meanwhile, Geoff Crain, VP of sales and digital for Kingstar Media, believes that the uncertainty surrounding TikTok’s future in Canada has cast a shadow over the social media landscape for agencies, advertisers and creators alike. “Understandably, many are reluctant to invest their time, budgets and creative energy into a platform that may soon disappear,” he says.

“If TikTok is forced to shut down, the ripple effects will be felt across the industry, impacting thousands of businesses, jobs and voices,” he says, noting that TikTok has been a significant player in Canada’s media landscape, promoting diversity, freedom of expression and accessible entertainment for millions, while also supporting local communities and institutions.

“I sincerely hope that any decision made is fair and final, so that we can move forward with clarity and confidence,” Crain adds.

Kate Dorofeeva, director of digital strategy at Involved Media Canada, tells MiC that the government’s decision has real consequences for the vitality of Canada’s arts ecosystem, especially at a time when budgets are tight.

“We believe it is a step backward for cultural investment, a loss for creators and small businesses and a policy decision that penalizes the arts ecosystem while letting the app remain available,” she says. “Targeting TikTok’s Canadian corporate presence, not the app itself, will result in millions in cancelled cultural support, while leaving a funding vacuum that the government does not offer solutions to fill.

“It hurts creators and Canadian business alike and sets Canada back in digital policy.”

While unable to comment on TikTok’s decision or its dispute with the government, Sarah Thompson, executive managing director of Glassroom, tells MiC that now is “a good moment to remind our industry” of homegrown media partners like Bell, Rogers and Corus, which she says have donated in-kind media to charities, events and non-profits across the country amounting to tens of millions of dollars.

“We have underestimated the economic value of our Canadian-owned media organizations to our GDP, and it is significant for job creation, tax revenue and economic growth,” she says.

MiC reached out to several other agencies, but most declined to comment due to their relationships with TikTok Canada.

TikTok’s response

The suspension of TikTok Canada’s artistic and cultural sponsorships includes major events such as the Toronto International Film Festival (TIFF) and the Juno Awards. Other partners affected include the National Screen Institute (NSI), music educational charity MusiCounts and Quebec music industry non-profit ADISQ (Association québécoise de l’industrie du disque, du spectacle et de la vidéo).

A TikTok spokesperson tells MiC that the company has been a strong supporter of Canadian businesses, creators and culture, and has launched programs that have benefited the country’s cultural industry.

For example, the TikTok Accelerator for Indigenous Creators, which was launched with the NSI in 2021, has supported nearly 400 Indigenous creators by providing them with a free program that “offers a curriculum developed with both traditional and spiritual elements in mind,” the spokesperson says. Over the years, the program has expanded from 40 participants to as many as 300 last year.

Since 2020, TikTok has also been the official voting platform of the Juno Fan Choice Award, and “has brought their annual celebration of Canadian music to a global audience.” In 2024, the company was able to expand voting access to Australia, New Zealand, the U.K and the U.S., allowing Canadian music and art to reach a larger audience.

Meanwhile, TikTok’s partnership with TIFF began in 2022, with the platform serving as the official and presenting partner of the Short Cuts Programme. By 2024, TikTok says the partnership expanded to include it as the official platform partner and presenting partner for Special Presentations, facilitating interactions between Canadian creators and industry professionals through Q&A sessions and panel discussions.

“We were in the final stages of solidifying our return this year but have had to end these plans due to the shut down order,” the spokesperson says.

“If the government comes to the table, as we have continuously requested, we are ready to find a locally tailored, alternative solution that addresses security concerns, provides Canada with greater oversight of TikTok, while preserving cultural investments and hundreds of local jobs.”