A Canadian federal court has overturned the government's directive forcing TikTok to cease business operations in the country, sending the matter back for fresh review and allowing the app's 14 million Canadian users to continue accessing the platform alongside its local workforce.

Federal court judge Russel Zinn set aside the November 2024 closure order on Wednesday without providing reasons, according to Reuters. The decision requires Industry Minister Melanie Joly to conduct a new national security review of TikTok's Canadian operations.

The original directive, issued by then-industry minister François-Philippe Champagne, ordered ByteDance-owned TikTok Technology Canada Inc to dissolve its business citing national security risks. The government maintained that whilst corporate operations must close, Canadian users could still access the app and create content.

Hans Parmar, a spokesperson for Innovation, Science and Economic Development Canada, confirmed Joly will proceed with the new review. "Due to the confidentiality provisions of the Investment Canada Act, we are not in a position to comment further," he told CTV News.

TikTok Canada welcomed the ruling. Danielle Morgan, a spokesperson for the company, told CTV News that "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".

The government's concerns centre on Beijing-based ByteDance's ownership structure and Chinese legislation requiring companies to assist state intelligence gathering. Ottawa cited "specific national security risks related to ByteDance Ltd's operations in Canada, including how information is likely to be protected, managed, used and shared by foreign actors" when issuing the November order.

The court decision arrives as Prime Minister Mark Carney seeks closer economic ties with China to offset damage from US tariffs, though his office declined to confirm whether he discussed TikTok during recent meetings with President Xi Jinping.

Canada's scrutiny of the platform mirrors actions by other Western governments examining potential data security risks. Last September, TikTok Canada agreed to strengthen measures preventing children from accessing its services following an investigation that found its child protection and personal information safeguards inadequate.

The closure order would have resulted in hundreds of job losses whilst leaving the app accessible to users, a compromise that TikTok challenged in federal court.

---