TikTok challenges order to cease operations in Canada

TikTok is challenging the federal government’s order to cease operations in Canada, saying the move will eliminate hundreds of jobs in the country and jeopardize a quarter of a million contracts with advertisers.

The company filed documents in Vancouver Federal Court on Dec. 5, seeking to overturn the order to wind up and cease operations in Canada.

In November, Ottawa ordered the dissolution of TikTok’s Canadian operations after a national security review into the Chinese company behind the social media platform.

TikTok should therefore gradually end its activities in Canada, although the application will continue to be available to Canadians.

TikTok is asking the court to rescind the government order and suspend its entry into force while the court hears the case.

The company says the decision was unreasonable and motivated by inappropriate goals.

TikTok Canada provides hundreds of Canadians with well-paying jobs and contributes millions of dollars per year to the Canadian economy, the application states. Through the TikTok platform, Canadian businesses and content creators can reach a global audience of more than 1 billion monthly users.

A TikTok spokesperson said in a statement that the order would eliminate jobs and livelihoods [ses] Hundreds of dedicated local employees – supporting the community of over 14 million monthly Canadian users on TikTok, including businesses, advertisers, creators and initiatives created specifically for Canada.

The review was carried out under the Investment Canada Act, which allows the government to investigate any foreign investment that could harm national security.

The Minister of Industry, François-Philippe Champagne, then declared in a press release that the government was taking measures to deal with specific national security riskswithout however specifying what these risks were.

TikTok’s legal filing says Mr. Champagne failed to engage with TikTok Canada about the alleged nature of the concerns that led to the order.

The company maintains that the government ordered measures that have no rational connection to the national security risks it identifies.

She states that the reasons for the order are unintelligible, do not reveal a rational chain of analysis and are full of logical errors.

TikTok Canada also claims that it participates in important Canadian public policy issues at the federal and provincial level, including those related to online safety, elections and culture.

The company filing indicates that TikTok Canada worked with Elections Canada and the Privy Council Office on partnerships to support election integrity on the TikTok platform.

TikTok says Innovation, Science and Economic Development Canada’s foreign investment and economic security review directorate abruptly ended the company’s national security review at the end of October and ordered the company to end its Canadian operations a week later.

Company’s legal filing says there were options less expensive than to order the closure, which, according to her, will result in the destruction of significant economic opportunities and intangible benefits for Canadian creators, artists and businesses, in addition to the Canadian cultural community at large.

The company’s law firm, Osler Hoskin & Harcourt LLP, declined to comment.

A spokesperson for Minister Champagne assured that the government’s decision was based on a in-depth review of national security and advice from the Canadian security and intelligence community.