TikTok has challenged a Canadian government order to shut down its business operations in the country, which was issued due to national security concerns.
The company announced on Tuesday that it had filed a judicial review application with the Federal Court in Vancouver on December 5, seeking to overturn the order for TikTok to wind up and cease its operations in Canada.
Last month, the Canadian government ordered the dissolution of TikTok Technology Canada Inc. following a national security review of its Chinese parent company, ByteDance Ltd. However, the government is not blocking access to the TikTok app itself, which will remain available to Canadians. TikTok currently has 14 million users in Canada, roughly one-third of the population, and operates offices in Toronto and Vancouver.
The popular platform, owned by ByteDance, a Chinese company that relocated its headquarters to Singapore in 2020, faces increasing pressure in Western countries. It is under threat of being banned in the U.S. and facing growing scrutiny in Europe over concerns such as alleged election influence campaigns linked to Moscow.
In its court application, TikTok argues that the decision by Industry Minister François-Philippe Champagne was “unreasonable” and driven by improper motives. The company claims the order is “grossly disproportionate” and that the national security review was “procedurally unfair.” The review was conducted under the Investment Canada Act, which allows the government to investigate foreign investments that could pose national security risks.
Champagne stated that the government was taking action to address “specific national security risks,” but did not provide further details. His office responded to the court filing by emphasizing that the decision was based on a “thorough national security review and advice from Canada’s security and intelligence community.”
TikTok contends that Champagne did not engage with TikTok Canada on the substance of the concerns that led to the order. The company argues that the measures imposed by the government have no logical connection to the identified national security risks and are riddled with logical fallacies. TikTok further asserts that there were less extreme alternatives to shutting down its Canadian operations, which would result in the loss of hundreds of jobs, disrupt business contracts, and eliminate significant economic opportunities.