(Bloomberg) -- TikTok will be able to continue operating its subsidiary in Canada for now, after a previous order for it to wind down its operations in the country was shelved by a judge.
In November 2024, under former Prime Minister Justin Trudeau, Canada ordered ByteDance Ltd. to close its subsidiary TikTok Technology Canada Inc. — but on Wednesday that order was set aside by the Federal Court.
A judge sent the matter back to Canada’s Industry Minister Melanie Joly “to undertake a new further review” under the Investment Canada Act.
The previous order followed a national security review with evidence and advice from Canada’s security and intelligence agencies, but did not ban the app, merely the company’s business operations in Canada.
A TikTok spokesperson welcomed the decision, and said the company looks forward “to working with the minister towards a resolution,” adding that the app has more than 14 million users in the country — about one-third of the population.
“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.”
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 days after Prime Minister Mark Carney was the first Canadian leader in more than eight years to visit China, where he announced a detente on tariffs and trade with President Xi Jinping.
Canada’s Innovation, Science and Economic Development department didn’t immediately respond to a request for comment.
TikTok’s operations and ownership have been the subject of a yearslong saga in the US since 2020.
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