TikTok Cleared to Continue Canadian Operations Following National Security Review

The Government of Canada (the “Government”) has concluded its most recent national security review of TikTok, the popular short-form video platform owned by Chinese technology company ByteDance Ltd. (“ByteDance”). Following the review, the Government reversed its earlier decision requiring ByteDance to wind down TikTok’s business operations in Canada. Instead, TikTok will be permitted to continue operating and proceed with a planned investment, subject to a series of new legally binding undertakings. 

The review was conducted under the Investment Canada Act, which allows the Government to investigate foreign investments that could pose risks to Canada’s national security. The Government’s revised decision follows an application for judicial review filed by ByteDance, challenging the original order that would have required TikTok to cease its Canadian operations. At the time, TikTok had more than 14 million monthly users in Canada. After reconsidering the matter through the national security review process, the Government determined that the concerns could be addressed through enhanced safeguards rather than a forced divestiture or shutdown.

In announcing the decision, the Honourable Mélanie Joly, Minister of Industry and responsible for Canada Economic Development for Québec Regions, emphasized that the outcome reflects a careful assessment of national security risks. According to Minister Joly, the decision followed “a thorough assessment of the information and evidence gathered during the review process, including advice from Canada’s security and intelligence community and other government partners.” She reiterated that protecting Canadians’ data and ensuring the safety of children online remain key priorities.

The additional safeguards and undertakings include the implementation of new security gateways and privacy-enhancing technologies designed to control access to Canadian user data, strengthened protections for minors and the appointment of an independent third-party to audit and continuously verify data access controls.

This decision reflects the Government’s attempt to balance national security considerations with economic and cultural interests, and aligns with a similar approach taken by the European Union. Minister Joly further noted that the decision will “protect Canadian jobs” and “support the growth of Canadian creators, artists and cultural organizations, while strengthening the production and accessibility of Canadian cultural content in both official and Indigenous languages across the country.” In a statement released on the platform, TikTok added that it looks forward to “investing in new and returning programs that support the thriving ecosystem of Canadian creators, artists and small businesses.”