A Federal Court judge set aside a government order requiring TikTok to wind down its Canadian operations, allowing the social media platform to maintain its offices while Industry Minister Mélanie Joly conducts a new review of the case.

Federal Court Judge Russel Zinn issued the decision on January 21, sending the matter back to Joly for reconsideration. The judge did not provide reasons for the ruling, according to CBC.

The original order, issued in November 2024 by Canada’s industry ministry, required TikTok’s business operations to be dissolved, citing national security risks. The government did not block user access to the platform or restrict content creation capabilities.

A spokesperson for Innovation, Science and Economic Development Canada confirmed that Joly “will now proceed with a new national security review.”

“Due to the confidentiality provisions of the Investment Canada Act, we are not in a position to comment further on the review,” the spokesperson told CBC News.

Company Statement

TikTok welcomed the court’s decision to overturn the shutdown order. Danielle Morgan, a TikTok Canada spokesperson, said 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,” Morgan said in a statement to The Canadian Press.

The company stated that closing its Canadian operations would have eliminated hundreds of jobs and reduced support for Canadian creators. TikTok reports that more than 14 million Canadians use the platform.

Following the November 2024 order, TikTok Canada withdrew sponsorships from several Canadian arts institutions, including the Juno Awards and the Toronto International Film Festival.

The company says it has invested millions in programs and partnerships supporting local artists and creators over the past five years since opening offices in Toronto and Vancouver.

Legal Context

University of Ottawa law professor Michael Geist described the move as a “consent order” rather than a substantive court ruling, telling The Canadian Press that “the government caved and said they would go back to the drawing board on this.”

“My understanding is this is not the court issuing a ruling on substance. It’s the court acquiescing to the government’s request, along with TikTok, to start over,” Geist said.

A parliamentary committee heard concerns in 2023 about “cyber-enabled espionage and foreign interference” regarding TikTok, which is owned by the Chinese company ByteDance.

Prime Minister Mark Carney has been seeking closer ties to China to help offset damage from U.S. tariffs on the Canadian economy, CBC reports.

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