The federal government is reversing course on its order demanding TikTok wind down its operations in Canada, but says the social media giant will be beholden to some new rules.
Industry minister Mélanie Joly announced on Monday evening that the government had completed its national security review of TikTok under the Investment Canada Act, and had revised an earlier decision that would have forced TikTok to wind down its Canadian operations.
The government negotiated with TikTok to establish “clear guardrails” for data protection and regulatory oversight.
In November of 2024, the government ordered TikTok to wind down its operations in Canada (but did not ban the social media platform outright) based on evidence it gathered as part of its national security review. At the time, then-innovation minister François-Philippe Champagne said the order aimed to address “specific national security risks” related to the operations of TikTok’s Chinese parent company, ByteDance, in Canada, but did not elaborate on the nature of the risks.
TikTok challenged the order shortly after the government issued it, and in January, a federal judge sent the decision back to Joly’s office for “a new further review.”
On Monday, Joly said the revised decision followed a “thorough assessment of the information and evidence gathered during the review process.” She added that the government negotiated with TikTok to establish “clear guardrails” for data protection and regulatory oversight.
According to Joly, TikTok will implement security gateways and “privacy-enhancing technologies” for Canadian user data to reduce the risk of unauthorized access, implement protections for minors consistent with recent recommendations from the Privacy Commissioner of Canada, and be subject to an independent third-party monitor that will audit TikTok’s data controls and protections.
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The industry minister said the decision ensures TikTok Canada maintains its physical presence in the country with an additional commitment to invest in Canada’s cultural sector.
TikTok confirmed the agreement in a statement of its own, which also noted a commitment to extend eligibility of its Research Tools Program to qualified Canadian researchers. The program supports independent research about its platform.
“We look forward to investing in new and returning programs that support the thriving ecosystem of Canadian creators, artists and small businesses,” TikTok said.
This past September, provincial and federal privacy watchdogs released a report that found TikTok had taken “inadequate measures” to keep children off its platform—resulting in the collection of personal and potentially sensitive information of “a large number” of Canadian children. TikTok is also 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.
Earlier this year, 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 Sarah Rieger.
Feature image courtesy Solen Feyissa via Flickr.