Canada has officially dropped its order to ban TikTok’s local operations. The decision is a ‘U-turn’ from a 2024 security mandate wherein the Canadian government said would have forced the social media giant to close its offices in Toronto and Vancouver. According to an official announcement, industry minister Melanie Joly announced that TikTok Technology Canada will now be allowed to continue its business, provided it follows a set of strict, legally binding security rules which are inspired by the approach taken by the European Union.

Why Canada ordered to ban TikTok

The order to wind down TikTok’s Canadian division was issued in November 2024 under former Prime Minister Justin Trudeau because the government said that the severs must be in the country due to national security concerns regarding its parent company, ByteDance. However, following a visit to China by the new Prime Minister, Mark Carney – the first such visit by a Canadian leader in nearly a decade – a deal was struck to relax tariffs. The government moved to set aside the shutdown order shortly after.

What the industry minister Melanie Joly said

The Government of Canada has completed the further national security review of the investment by TikTok Technology Canada Inc. (TikTok Canada) under the Investment Canada Act and has decided to permit the investment to proceed, subject to new legally binding undertakings provided by TikTok Canada.The decision follows a thorough assessment of the information and evidence gathered during the review process, including advice from Canada’s security and intelligence community and other government partners. Protecting Canadians’ data and the safety of children online will always be a top priority of the government.Aligned with a similar approach taken by the European Union (EU), the government has negotiated enhanced undertakings through this further review, establishing clear guardrails that will better protect Canadians’ data and place Canada in a stronger position with respect to data security and regulatory oversight:TikTok will implement enhanced protection for Canadians’ personal information, including new security gateways and privacy-enhancing technologies to control access to Canadian user data in order to reduce the risk of unauthorized or prohibited access.TikTok will implement enhanced protections for minors consistent with the findings and recommendations of the Privacy Commissioner of Canada’s joint investigation of TikTok Pte. Ltd.To ensure transparency, as has been done in the EU, an independent third-party monitor will be appointed to audit and continuously verify data access controls.“The Government of Canada will exercise its full authorities under the Investment Canada Act and ensure the full implementation and enforcement of the measures committed to by TikTok Canada, via the undertakings outlined above, and following the report of the Privacy Commissioner of Canada. As this work continues, we are actively pursuing measures to make social media safer for young Canadians and reviewing recent initiatives introduced in other countries.Further, this decision will protect Canadian jobs, ensuring that TikTok Canada maintains a physical presence in Canada, with commitments to invest in its cultural sector. TikTok Canada will support the growth of Canadian creators, artists and cultural organizations, while strengthening the production and accessibility of Canadian cultural content in both official and Indigenous languages across the country.