TikTok's Legal Challenge in Canada

(Reuters) – TikTok's Canada unit has filed an emergency motion with Canada's Federal Court, seeking a judicial review of a government order mandating the shutdown of its operations over national security concerns, as stated in a Tuesday announcement.

The Chinese-owned social media app has requested that the court set aside the government order which requires TikTok to close its business in Canada, according to a filing dated December 5.

Alternatively, the filing suggests that the court could nullify the order and return it to the government for further review along with guidance recommendations.

Last year, Ottawa began investigating TikTok's plans to invest and expand its operations in Canada, which resulted in a government order last month terminating the firm’s Canadian operations due to national security issues.

TikTok contended that shutting down its Canadian business would result in hundreds of job losses. In its legal challenge, the company stated, "We believe it's in the best interest of Canadians to find a meaningful solution and ensure that a local team remains in place, alongside the TikTok platform."

Under Canadian law, the government is empowered to evaluate potential national security risks associated with foreign investments such as TikTok's proposals. However, the government is restricted from disclosing the specifics of such investments.

The order made by Canada did not prohibit Canadians from accessing the popular social media platform, which boasts over 14 million monthly users in the country.

As of now, Canada’s Ministry of Innovation, Science and Industry has not provided a response to Reuters' request for comment outside regular business hours.

This Canadian order aligns with a similar situation in the U.S., where President Joe Biden signed legislation in April requiring Bytedance, TikTok's parent company, to divest its U.S. assets by January 19, 2025, or risk a nationwide ban.

On Monday, TikTok and Bytedance requested an appeals court to temporarily block the law pending a Supreme Court review.