The federal government agreed to set aside its decision ordering the wind-down of TikTok’s Canadian operations.
Innovation, Science and Economic Development Canada confirmed in a statement that the Federal Court set aside the order “on the consent of the Government of Canada and TikTok.”
On Wednesday, a Federal Court judge set aside a November order for the social media company to wind down operations in Canada, meaning it can keep running its offices here while the industry minister conducts another review.
Citing national security concerns, the Liberal government ordered TikTok to close its offices in Canada in 2024 but stopped short of banning the app for users.
Privacy and safety concerns have been raised about TikTok and its China-based parent company ByteDance Ltd. because of Chinese national security laws that compel organizations in the country to assist with intelligence gathering.
The agreement to set aside the decision comes shortly after Prime Minister Mark Carney visited China and secured a deal to get China to lower agricultural tariffs in exchange for opening some market access for Chinese electric vehicles.
A TikTok Canada spokesperson said Wednesday the tech company welcomed the decision and looks forward to working with Joly.
The company said closing its Canadian operations would have meant hundreds of jobs lost and less support for homegrown creators.
It announced last year it was pulling out as a sponsor of several Canadian arts institutions, including the Juno Awards and the Toronto International Film Festival, as result of the order.
TikTok said that since it opened offices in Toronto and Vancouver, it has invested millions of dollars in programs and partnerships supporting local artists and creators. It says 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," a spokesperson for TikTok said.
Picture Courtesy: AP Photo/Joshua A. Bickel
