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Industry minister talks TikTok, Elon Musk and the future of his AI bill

Champagne says families should make own decisions about using TikTok as court battle looms
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Minister of Innovation, Science and Industry Fran莽ois-Philippe Champagne poses for a portrait at his office in Ottawa, on Thursday, Dec. 12, 2024. THE CANADIAN PRESS/Spencer Colby

As the federal government battles TikTok in court over Ottawa鈥檚 order to close its Canadian offices, Canada鈥檚 industry minister says families should make their own decisions about whether to continue using the app.

鈥淯ltimately, that鈥檚 a choice for people to make with eyes wide open,鈥 Fran莽ois-Philippe Champagne said.

As for what he tells his own family? Champagne won鈥檛 share.

鈥淚 don鈥檛 want to give advice on my personal experience in the sense that that is a more broad-based issue鈥t鈥檚 like if you were asking about my eating habits, well, they may be well-suited for me and my family,鈥 he said.

鈥淢y personal experience or my risk tolerance鈥ight be very different than other people.鈥

Champagne made the comments in a wide-ranging year-end interview with The Canadian Press. The interview was conducted on Dec. 12, before the surprise resignation of former finance minister Chrystia Freeland raised questions about the fate of the Liberal government. Champagne, who has been industry minister since 2021, kept in post in a Dec. 20 cabinet shuffle.

In November, the federal government said that TikTok must close its operations in Canada after a national security review of the Chinese company behind the social media platform, though the app itself would remain available to Canadians.

The company filed a challenge in December, arguing in Federal Court that the decision was 鈥渦nreasonable鈥 and 鈥渄riven by improper purposes.鈥

In the interview, Champagne said companies are free to launch a 鈥渓egal challenge if they want, but it won鈥檛 detract me from my first job, which is to protect the national security of Canadians.鈥

He declined to specify what the deadline is for the company to wrap up operations.

Privacy and safety concerns around TikTok and its China-based parent company ByteDance Ltd. have centered around Chinese national security laws that compel organizations in the country to assist with intelligence gathering. Ottawa hasn鈥檛 outlined the specific national security reasons behind the shut-down order.

The review didn鈥檛 deal with the question of whether the app should be banned, Champagne indicated.

鈥淭here鈥檚 a huge difference between using an app and the activities you can conduct on the ground,鈥 he said.

Champagne said the focus of the government鈥檚 order was 鈥渨ith respect to the activities that were conducted by TikTok in its offices in Canada.鈥

Asked whether that means there are no national security concerns about Canadians using the app or that the order just didn鈥檛 look at that question, Champagne responded: 鈥渦nder the law, my jurisdiction is with respect to the activities conducted in Canada by a foreign entity鈥.That鈥檚 why I say there鈥檚 a difference between an app and the activities being conducted by employees in offices in Canada.鈥

Champagne said people should listen to advice that has 鈥渂een given by security agencies both in Canada and abroad in making an informed decision for them or their children, if they really want to use these platforms.鈥

In May, David Vigneault, then the director of CSIS, said he personally would not recommend using the app.

TikTok wasn鈥檛 the only national security issue involving a high-profile company for Champagne this year.

In September, the Liberal government announced a $2.14 billion loan to Ottawa-based satellite operator Telesat, which is launching a constellation of low Earth orbit satellites that will be able to connect the most remote areas of the country to broadband internet.

The Conservatives tagged in American billionaire Elon Musk, who said he could provide connectivity for less than half that amount.

While Telesat said the exchange on Musk鈥檚 X platform didn鈥檛 reflect the reality of the government鈥檚 deal (for one, Telesat will give up 12 per cent equity in the company), Champagne accused the Conservatives of wanting to 鈥渟ell out our national security.鈥

Musk has become an increasingly controversial and political figure in recent years. A supporter of incoming U.S. president Donald Trump, Musk has been tagged to co-lead a new 鈥淒epartment of Government Efficiency鈥 and is emerging as a political force ahead of the presidential inauguration.

Trump has also caused upheaval for Canadian federal and provincial governments with his promise to impose 25 per cent tariffs. He has also repeatedly made references, generally dismissed as jokes, about Canada becoming the 51st state. Musk, meanwhile, recently called Prime Minister Justin Trudeau an 鈥渋nsufferable tool鈥 in a post on X.

Asked whether his concerns about national security were about Starlink and Musk himself, Champagne responded: 鈥淚鈥檝e met Elon. No, I think it鈥檚 more about favouring a Canadian champion. It鈥檚 not about the others, it鈥檚 about us鈥e have the chance to have one of the largest companies when it comes to satellite communication.鈥

He pointed to the need for secure communications in the north.

鈥淲e know that having secure communication in the Arctic and the North will be crucial for national security and when it comes to aviation, with navigation in the northern passage,鈥 he said. 鈥淚t鈥檚 important to have sovereignty when it comes to data and data links that may be used in the future.鈥

While telecom has always been a mainstay of the industry minister鈥檚 portfolio, a big part of Champagne鈥檚 focus has been on artificial intelligence 鈥 both the promise it holds for Canadian businesses and the need to put regulations in place to contain its dangers.

In 2022, Champagne introduced AI regulation Bill C-27, targeting 鈥渉igh-impact鈥 AI systems. The government later proposed amendments to the bill, including a definition of 鈥渉igh-impact,鈥 which would include systems used in law enforcement, health care or decisions around employment.

But it still hasn鈥檛 become law; critics said the government was initially slow to move it through the parliamentary process, as the Liberals prioritized other internet regulation legislation.

Once it did make it to committee for a study, it鈥檚 been bogged down in the clause-by-clause process that has stretched on since April and saw the Liberals and Conservatives accuse each other of filibustering.

Champagne says he has been in contact with the opposition parties to try to get the bill through.

鈥淭here have been discussions with parties to say, ok, how can we come together and deliver something that might not be perfect, but that would be better than what we have today.鈥

He described those discussions as a 鈥渨ork in progress.鈥

鈥淲e started from a base which was more political, to now something that I hope we can move beyond political lines.鈥

AI regulation is part of building trust in the technology, something that Champagne says is necessary to unleash AI as the 鈥渉oly grail of productivity.鈥 Champagne has also introduced a voluntary industry code of conduct, and in November launched a research centre that will study the dangers posed by artificial intelligence technology.

鈥淎nd in order to build trust, you need guardrails, you need a framework. And when you have trust, then you鈥檙e going to have more adoption, which is going to lead to more innovation. So it鈥檚 really from fear to opportunity,鈥 he said.

鈥淚f you and I were to go out in the street today, I think the jury is still out as to how many people would think that AI will be a force for good for humanity.鈥





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