TikTok Gets Reprieve in Canada After Court Shelves Ban Order

(Bloomberg) — TikTok will be able to continue operating its Canadian subsidiary for now after an earlier decision to halt operations in the country was scrapped by a judge.

In November 2024, under former Prime Minister Justin Trudeau, Canada ordered ByteDance Ltd. to shut down its subsidiary TikTok Technology Canada Inc. — but on Wednesday, that order was struck down by the Federal Court.

A judge sent the matter back to Canada’s Industry Minister Melanie Joly for “a new review” under the Investment Canada Act.

The previous order followed a national security review with evidence and recommendations from Canada’s security and intelligence agencies, but did not ban the practice, only the company’s business operations in Canada.

A TikTok spokesperson welcomed the decision and said the company looked forward to “working with the minister towards a solution”, adding that the app has more than 14 million users in the country, about a third of the population.

“Keeping TikTok’s Canadian team in place will provide Canada with a path forward that continues to support millions of dollars in investment and hundreds of local jobs.”

University of Ottawa law professor Michael Geist said in a post on X that the move means the government has hit the “reset button” on the pre-existing ban.

This so-called reset comes just days after Prime Minister Mark Carney became the first Canadian leader to visit China in more than eight years and announced a détente on tariffs and trade with President Xi Jinping.

Canada’s Innovation, Science and Economic Development department did not immediately respond to a request for comment.

TikTok’s operations and ownership have been the subject of a years-long saga in the US since 2020.

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