Federal Court Halts Shutdown of TikTok Canada, Orders Fresh National Security Review

Ottawa (Rajeev Sharma): Canada’s Federal Court has set aside a government directive that would have shut down TikTok’s Canadian operations, temporarily allowing the popular short-form video platform to continue operating in the country.

In a brief ruling issued Wednesday, Justice Russel Zinn overturned the closure order and referred the matter back to the federal industry minister for reconsideration. The judgment did not outline the court’s reasoning.

Innovation, Science and Economic Development Canada confirmed the decision in a statement, saying the issue will now return to the minister for a renewed national security assessment. The department added that details of the review cannot be disclosed due to confidentiality rules under the Investment Canada Act.

TikTok welcomed the court’s decision, saying it opens the door to discussions with the federal government on a possible resolution. The company said maintaining its Canadian operations would support ongoing investment and protect hundreds of local jobs, while continuing to serve millions of users across the country.

The ruling follows a November 2024 order from the federal government directing TikTok to dissolve its Canadian business over national security concerns. At the time, officials clarified that the move would not block Canadians from accessing the app or creating content. TikTok subsequently challenged the order in court.

Canada, along with several other countries, has been closely examining TikTok amid concerns that user data could be accessed or leveraged by Chinese authorities. The platform is owned by ByteDance, a China-based technology company. TikTok has repeatedly said it operates independently and does not share user data with the Chinese government.

The decision comes as Ottawa seeks to recalibrate its international economic relationships, particularly in light of ongoing trade tensions with the United States. Separately, TikTok has faced regulatory scrutiny in Canada over child safety and data protection, agreeing last year to strengthen safeguards following a federal investigation.

For now, TikTok’s future in Canada remains unresolved, pending the outcome of the renewed national security review.

By Rajeev Sharma

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