TikTok Canada Saved from Shutdown as Federal Court Overturns Liberal Order

A federal court has overturned a Liberal government order that would have forced TikTok Canada to shut down its business operations. The ruling, first reported by Politico, sends the case back to Industry Minister Mélanie Joly for a second review.

On Wednesday, a federal judge quashed the 2024 order that sought to close the tech company’s offices in Toronto and Vancouver. The judge’s decision means TikTok Canada can continue its local operations for now, setting aside the government’s previous wind-up demand.

The original order was issued under the Investment Canada Act by then-Industry Minister François-Philippe Champagne. At the time, the government cited national security concerns regarding TikTok’s parent company, ByteDance, which is based in Beijing. Officials worried that sensitive user data could be accessed by the Chinese government, though they stopped short of banning the app itself for the more than 14 million Canadians who use it.

TikTok Canada challenged the order in court, arguing that closing its offices would destroy hundreds of local jobs without addressing any underlying security concerns.

Danielle Morgan, a spokesperson for TikTok Canada, released a full statement welcoming the court’s decision, saying, “We welcome the decision to set aside the order to shut down TikTok Canada, and look forward to working with the Minister towards a resolution that’s in the best interest of the more than 14 million Canadians using TikTok. 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.”

So for now, TikTok can continue its Canadian operations, while the app still stays widely available (except on phones used by federal employees).