Federal government asked court to set aside Ottawa’s shutdown order for TikTok Canada

A view of the TikTok offices in Toronto, on Wednesday December 4, 2024. THE CANADIAN PRESS/Chris Young

The federal government asked for a court ruling to set aside the government’s 2024 decision ordering TikTok to shut down its Canadian operations due to national security concerns.

On Monday, the government filed a letter with the Federal Court saying it had reached an agreement with TikTok to set aside the wind-down order and launch another national security review. The government’s letter said Ottawa and TikTok had agreed to jointly seek an order from the court.

On Wednesday, a Federal Court judge issued that order. The decision means the social media company can keep its offices here running while the industry minister conducts the new review.

The Liberal government ordered TikTok to close its offices in Canada in 2024, but stopped short of banning the app for users. TikTok challenged the order in court.

Privacy and safety concerns have been raised about TikTok and its China-based parent company ByteDance Ltd. because of Chinese national security laws that compel organizations in the country to assist with intelligence gathering.

The agreement to set aside the shutdown order comes shortly after Prime Minister Mark Carney visited China and secured a deal to get China to lower agricultural tariffs in exchange for opening some market access for Chinese electric vehicles.

The Canadian Press has reached out to Joly’s office to ask whether the government’s move to set aside the order is related to the trip but has not yet received a statement.

University of Ottawa law professor Michael Geist said Wednesday the shutdown order “never made any sense.”

“The government’s decision to ban the corporate entity, but not the app, never really addressed the fundamental concerns that Canadians might have had around privacy or security,” he said.

Geist said it’s possible the Liberal government was trying initially to “piggyback” on the United States’ stated intention to ban TikTok.

But TikTok signed a deal late last year to sell its U.S. business to three American investors — Oracle, Silver Lake and MGX — allowing the app to keep operating in the country.

Since then, Canada’s relationship with the U.S. has been eroded by U.S. President Donald Trump’s tariffs and threats to somehow annex Canada. Carney, meanwhile, touted a renewed relationship with China in Beijing last week.

A TikTok Canada spokesperson said Wednesday the company welcomes the decision and looks forward to working with Joly. The company said closing its Canadian operations would have meant hundreds of jobs lost and less support for homegrown creators.

TikTok announced last year it was pulling out as a sponsor of several Canadian arts institutions, including the Juno Awards and the Toronto International Film Festival, as result of the order.

TikTok said that since it opened offices in Toronto and Vancouver, it has invested millions of dollars in programs and partnerships supporting local artists and creators. It says more than 14 million Canadians use the app.

This report by The Canadian Press was first published Jan. 22, 2025.

With files from Alex Nino Gheciu

By Anja Karadeglija