TikTok Canada will be allowed to continue its business operations in the country while it awaits another government review.
On Wednesday, federal court Justice Russel Zinn set aside a Nov. 5, 2024 order that would have forced the social media app to wind down its business in the country. Zinn ordered the matter to be sent back to industry minister Melanie Joly for “a new further review … which allows for a decision.” The short judgment did not state a reason for the decision.
A TikTok Canada spokesperson told BetaKit in an emailed statement that the company welcomes the decision to set aside the order, and that the company looks forward to working with the minister toward a resolution. “Keeping TikTok’s Canadian team in place will enable a path forward that continues to support millions of dollars of investment in Canada and hundreds of local jobs.”
Justice Russel Zinn ordered the matter to be sent back to industry minister Melanie Joly for “a new further review … which allows for a decision.”
The initial order to wind down TikTok’s business did not impact the app’s availability in Canada, or users’ ability to post content. At the time, the federal government stated the shutdown order was due to unspecified national security risks, but government officials did not make it clear how those risks applied solely to TikTok’s business, and not the more than 14 million active monthly users in the country.
TikTok had challenged the order, but last year it began preparing for a possible shutdown by winding down its Canadian arts funding.
TikTok is also currently facing a proposed class-action lawsuit in Canada over accusations it misused the personal data of people who downloaded the app, including children. Those accusations have yet to be proven in court.
The company claimed that last year it contributed $2.3 billion in GDP to Canada’s economy through its own operations, as well as content creators and small businesses promoting their work through the platform.
TikTok is owned by Chinese parent company ByteDance.
Last week, Prime Minister Mark Carney visited China, where he struck a deal that would see softer tariffs on Chinese electric vehicles in exchange for China lowering tariffs on Canadian agricultural products like canola. The deal appeared to signal Canada is taking a softer stance, months after Carney called China “the biggest security threat” Canada is facing.
With files from Alex Riehl.
Feature image courtesy Solen Feyissa.