Industry minister to conduct new national security review of TikTok, Canadian business allowed to continue operating for now

The Federal Court has overturned a government order that would have forced TikTok to wind up its Canadian operations, directing the minister of industry to conduct a fresh national security review of the social media platform. In a judgment released Wednesday, Jan. 21, Justice Russel Zinn set aside the November 2024 order — issued through then-industry minister François-Philippe Champagne — and allowed the ByteDance Ltd. subsidiary’s application for judicial review. The matter has been sent back to the minister, now Mélanie Joly, to undertake a new review of investments in the company under the Investment Canada Act. The court’s ruling was based on an agreement between TikTok and the federal government to settle the platform’s legal challenge against the government order. According to a letter from the attorney general, the parties entered into discussions and ultimately agreed to jointly seek a court order that would effectively restart the national security review process that led to the order in the first place. “We welcome the decision to set aside the order to shut down TikTok Canada, and look forward to working with the minister towards a resolution that's in the best interest of the more than 14 million Canadians using TikTok,” a TikTok spokesperson said in a statement to The Wire Report. "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.” Innovation, Science and Economic Development Canada did not respond to The Wire Report's request for comment by the time of publication. When the wind up order was first announced, Champagne said in a statement that it was based on “specific national security risks” related to ByteDance’s operations in Canada through TikTok, “information and evidence” collected during the government’s review of the company, and “the advice of Canada’s security and intelligence community and other government partners.” While the government had ordered the Canadian subsidiary to cease all operations, it noted that the decision would not block Canadians from accessing the TikTok application or creating content. Further details of the order-in-council were not publicly disclosed due to it containing “privileged information.” TikTok filed for judicial review a month later, arguing the government order was “unreasonable,” “procedurally unfair,” and “driven by improper purposes.” TikTok alleged in court filings that the government failed to substantively engage with the company during the national security review and abruptly concluded the process without giving it a fair opportunity to address concerns. It also claimed that the minister failed to provide guidance on what specific undertakings or commitments might have resolved the identified security risks. TikTok argued that the wind up order would “result in the termination of hundreds of employees in Canada and the potential termination of over 250,000 contracts with Canadian-based advertisers. In addition, the will cause the destruction of significant economic opportunities and intangible benefits to Canadian creators, artists, and businesses, and the Canadian cultural community more broadly.” Under the terms of the court’s latest judgment, the industry minister must send a new notice to TikTok without delay to restart the review process. Justice Zinn also specified that there would be no costs associated with the motion or the application. phalentm@thewirereport.ca

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Industry minister to conduct new national security review of TikTok, Canadian business allowed to continue operating for now

Court | By Phalen Tynes-MacDonald |January 21, 2026

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Court |
By Phalen Tynes-MacDonald
|January 21, 2026