Canadian citizens can still be brainwashed even if their data is stored within Canada.
So then why aren't they banning the app?
If any app is brainwashing people it's the zombie of twitter. Not tik tok.
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The point is that from a disinformation dissemination perspective, it doesn't matter where the data was stored, but the government could have possibly had more control if the data was stored in Canada. Forcing the data to be removed from Canada doesn't seem to be accomplishing anything positive for the Canadian government or people.