TikTok is challenging the Canadian government’s order to halt its business operations, citing national security concerns.
The company filed for judicial review in federal court in Vancouver on Dec. 5 to overturn an order ordering the dissolution of TikTok Technology Canada Inc.
Last month, Canadian Industry Minister François-Philippe Champagne announced plans to shut down TikTok’s Canadian entity.
This happened after a national security review of its Chinese parent company ByteDance Ltd.
TikTok argues there are “less onerous” solutions than the shutdown route taken by Prime Minister Justin Trudeau’s government.
Despite the order, Canadians still have access to TikTok because the app itself remains unaffected by the directive.
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How did the Canadian government decide this?
Minister Champagne emphasized that the decision was based on comprehensive advice from Canada’s security and intelligence community.
He also urged Canadians to use TikTok “with their eyes wide open.”
The review was conducted under the Investment Canada Act, which allows the government to investigate foreign investments that could pose a threat to national security.
TikTok says the government failed to discuss the concerns that prompted the order with the company. The company says the measures imposed “bear no rational connection to national security risks” and described the rationale as “incomprehensible” and “contains logical fallacies.”
While TikTok remains accessible to Canadians, the future of its business operations depends on the outcome of the judicial review.
TikTok argues for “unfair” practices
The government defended its actions as necessary to address “specific national security risks” associated with ByteDance’s operations in Canada.
In its court filing, TikTok called Minister Champagne’s decision “unreasonable” and “driven by improper purposes.” The company further argued that the order was “grossly unreasonable” and that the national security review was “procedurally unfair”.
TikTok says it has 14 million users in Canada — about one-third of the population — with offices in Toronto and Vancouver.
The company warned of significant economic impacts from the shutdown. “Closing TikTok’s Canadian offices and destroying hundreds of well-paying local jobs is not in anyone’s best interest,” the company said in a statement last month.
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Similar problems faced in the US
The situation in Canada mirrors the challenges TikTok faces in the US
President Joe Biden signed legislation requiring ByteDance to sell its US assets by January 19, 2025 to avoid a nationwide ban. TikTok and ByteDance are appealing the law, saying it violates free speech rights.
A federal appeals court recently upheld that decision, saying the legislation was “carefully crafted to address only control by a foreign adversary” and designed to “counter a well-substantiated national security threat posed by the PRC (People’s Republic of China). “
Analysts estimate that a US ban could cost small businesses more than $1 billion in sales and creators nearly $300 million in earnings in a single month.
This article contains reports from The Associated Press.
