Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

TikTok's Canada unit seeks judicial review of shutdown orders

Published 12/11/2024, 12:22 AM
Updated 12/11/2024, 06:45 AM
© Reuters. FILE PHOTO: TikTok logo is seen in this illustration taken, June 2, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

(Reuters) -TikTok's Canadian unit said it has filed an emergency motion with Canada's Federal Court seeking a judicial review of an order that the company shut down its operations in the country on national security concerns.

The Chinese-owned social media app requested the court set aside a government order requiring TikTok to wind-up its business in Canada, a filing dated Dec. 5 showed.

Alternatively, it said the court could set aside the order and return it to the government for review along with guidance.

A spokesperson for Canada's Minister of Innovation, Science and Industry said in a statement that the government stood by its decision requiring TikTok to wind up its business in Canada.

"The Government’s decision was informed by a thorough national security review and advice from Canada’s security and intelligence community", the spokesperson said on Wednesday.

Ottawa began investigating TikTok's plan to invest and expand its business in Canada last year. The review led to a government order last month that required the firm to end its Canadian operations because of national security concerns.

Closing its Canadian business would lead to hundreds of job losses, TikTok argued in its statement on the legal challenge.

"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," it said on Tuesday.

Under Canadian law, the government can assess potential risks to national security from foreign investments, such as the TikTok proposal. The law prevents the government from revealing the details of such investments.

Last month's order stopped short of blocking Canadians' access to the popular social media platform. TikTok has more than 14 million monthly users in Canada, according to the company.

© Reuters. FILE PHOTO: TikTok logo is seen in this illustration taken, June 2, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

The Canadian order followed similar action in the U.S. where President Joe Biden in April signed a law requiring Bytedance, which owns TikTok, to sell its U.S. assets by Jan. 19, 2025 or face a nationwide ban.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.