Ottawa, January 22: In a significant legal victory for the social media giant, Canada's Federal Court has overturned a government mandate that ordered the closure of TikTok’s domestic business operations. Judge Russel Zinn set aside the dissolution order on Wednesday, directing the federal government to re-evaluate the case. This ruling allows the short-video platform, owned by the Chinese firm ByteDance, to continue its corporate presence in the country for the time being.

The legal battle began in November 2024 when the Canadian government ordered TikTok Technology Canada Inc. to wind down its operations, citing unspecified national security risks. While the order targeted the company’s business offices and local staff, it did not block Canadian citizens from accessing the app or creating content. TikTok, which maintains a user base of over 14 million monthly active users in Canada, promptly appealed the decision, leading to the current court intervention. AI-Only TikTok Rival Coming? ChatGPT-Maker OpenAI Reportedly To Launch Social Media App for AI-Generated Videos.

TikTok Canada Operations Review

Following the court's decision, Industry Minister Melanie Joly will now spearhead a fresh national security review of the platform. The Industry Ministry confirmed the upcoming proceedings but declined to provide specific details, citing strict legal confidentiality provisions. Judge Zinn’s judgment did not publicly disclose the specific reasons for setting aside the original order, focusing instead on the requirement for a procedural re-examination by the state.

A spokesperson for TikTok welcomed the court's ruling, stating that the company looks forward to engaging with Minister Joly during the review process. The platform has consistently denied allegations that it shares user data with the Chinese government, asserting that it operates independently and prioritises user privacy.

Canada National Security Concerns

The scrutiny of TikTok in Canada mirrors global concerns regarding ByteDance's ties to China. Western nations have expressed apprehension that the app could be utilised to harvest sensitive data or influence public discourse. This tension comes at a delicate time for Prime Minister Mark Carney’s administration, which has been attempting to navigate closer economic ties with China to mitigate the impact of trade pressures from the United States. TikTok Update: ByteDance-Owned Platform Now Allows Its Android App To Download Outside of Google Play Store in US.

While the corporate dissolution order is under review, TikTok remains under pressure regarding safety standards. In September 2025, the company agreed to enhance measures to protect children and safeguard personal information following an investigation that found previous efforts inadequate. The outcome of the new security review will ultimately determine whether TikTok can maintain its permanent corporate footprint in Canada.

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(The above story first appeared on LatestLY on Jan 22, 2026 10:12 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).