Ottawa is not imposing restrictions on Canadian users of TikTok, which has come under scrutiny for its ownership under China-based ByteDance.

"The decision to use a social media application or platform is a personal choice," Champagne said.

Canada banned TikTok from all government devices last year and launched a security review of the application.

Champagne said Wednesday's decision was made in accordance with a law that "allows for the review of foreign investments that may be injurious to Canada's national security."

TikTok said it would challenge the decision in court.

"Shutting down TikTok's Canadian offices and destroying hundreds of well-paying local jobs is not in anyone's best interest," said a spokesperson.

"We will challenge this order in court."

A cyber expert at the University of Ottawa, Michael Geist, said "there may well be good reasons" to ban the app but warned the move could be counterproductive.

"Banning the company rather than the app may actually make matters worse since the risks associated with the app will remain but the ability to hold the company accountable will be weakened," Geist wrote in an online post.

TikTok also faces a ban in the United States if it remains owned by ByteDance - a threat the company is battling in a federal appeals court, arguing that it violates free speech rights.

The US government alleges that TikTok allows Beijing to collect data and spy on users. It also says the platform is a conduit to spread propaganda.

China and the company strongly deny these claims.