Federal Court sets aside order to wind down TikTok Canada, operations continue during new review
A Federal Court set aside the government’s wind-down order for TikTok Canada by consent, allowing its offices to stay open while a new review is conducted.
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By Torontoer Staff
The Federal Court has set aside the federal government’s order requiring TikTok to wind down its Canadian operations, the government confirmed. The decision, reached on the consent of both the Government of Canada and TikTok, allows the company to keep its Canadian offices open while the industry minister undertakes another review.
Innovation, Science and Economic Development Canada said the court set aside the November order ‘‘on the consent of the Government of Canada and TikTok.’’ The original order, issued in 2024, required TikTok to close its Canadian operations on national security grounds but did not ban the app for users.
What the court decision means right now
With the order set aside, TikTok can continue running offices in Toronto and Vancouver and maintain staff while federal officials carry out a fresh review. The move pauses an immediate wind-down that would have forced the company to close Canadian operations and sever in-country support.
on the consent of the Government of Canada and TikTok.
Innovation, Science and Economic Development Canada
Why Ottawa ordered the wind-down in the first place
The government cited national security concerns in ordering the 2024 wind-down. Concerns centre on TikTok’s China-based parent, ByteDance Ltd., and Chinese laws that can require organisations to assist with state intelligence activities. Ottawa said those risks needed mitigation at a level it had not seen addressed to its satisfaction.
Implications for creators, institutions and jobs
TikTok warned that a forced closure of its Canadian operations would have led to hundreds of job losses and reduced support for local creators. The company said it had invested millions of dollars in programs and partnerships since opening offices here and that more than 14 million Canadians use the app.
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.
TikTok Canada spokesperson
Last year, TikTok announced it would withdraw sponsorships from several Canadian cultural events, including the Juno Awards and the Toronto International Film Festival, citing the government wind-down order. Those decisions affected funding and partnerships for arts institutions and creators who rely on platform support.
What creators and businesses should expect next
- TikTok’s Canadian offices will remain open while the industry minister completes a new review.
- Federal officials may negotiate additional safeguards, oversight measures, or operational requirements before issuing any further direction.
- Creators and partner organisations should expect ongoing uncertainty about sponsorships and program commitments until the review concludes.
- Any future orders would likely be subject to further legal challenges or settlements between the parties.
TikTok said it welcomed the court decision and looks forward to working with Joly. The company framed keeping its staff in Canada as key to maintaining investments and services for users, creators and cultural partners.
What could come out of the new review
The industry minister’s fresh review could result in several outcomes. Officials might identify mitigation steps that allow TikTok to continue operating with new conditions, such as data access restrictions or independent audits. Alternatively, the minister could return to court with a revised order. The consent-based setting aside of the previous order suggests the government and TikTok are negotiating how to manage the risks while limiting disruption.
Federal agencies and national security advisers will likely remain involved, and any agreement could include ongoing monitoring or enforceable commitments intended to address Ottawa’s concerns.
For now, Canadians who use the app and creators who rely on its services and sponsorships will see continuity in platform operations, but the sector faces a period of review and possible policy changes that could reshape how global tech companies operate in Canada.
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