By Paul Vieira
OTTAWA--Canada said Monday it is formally reversing its decision to shut down TikTok's unit in the country on national-security grounds.
The decision comes about seven weeks after lawyers acting for the federal government and TikTok Technology Canada agreed to a judge-approved settlement. Under the settlement, Canada agreed to revisit its original 2024 decision to ban TikTok. TikTok had sought to quash the government's order in court.
This also marks another example of Canada resetting ties with China. The court-approved settlement emerged days after Prime Minister Mark Carney visited China, and struck a trade deal with Chinese leader Xi Jinping regarding reduced tariffs on some Chinese-made electric vehicles and Canadian agricultural products.
TikTok's Canadian operations are controlled by ByteDance, a Chinese technology company. TikTok has different ownership in the U.S., under a deal structured to prevent the app from being banned for national-security concerns.
Canada's Industry Minister Melanie Joly said TikTok was being allowed to operate in Canada, subject to conditions focused on protecting Canadians' data and the safety of children.
In a statement, TikTok said it also agreed to third-party oversight regarding its data-protection measures, and increased support for Canadian artists, especially among the country's French-speaking and indigenous populations.
"We look forward to investing in new and returning programs that support the thriving ecosystem of Canadian creators, artists and small businesses," said a TikTok spokesperson, adding that 16 million Canadians visit the social-media app every month.
Canada's reversal was widely anticipated after the settlement agreement was reached in January. The 2024 decision from former Prime Minister Justin Trudeau applied to TikTok's business operations in the country. Ottawa did not forbid Canadians from downloading the TikTok app or posting content on the digital platform.
Canada said in late 2024 that banning TikTok's domestic unit was necessary due to "specific national-security risks" flagged by the country's intelligence service. Canadian officials never elaborated on what that entailed.
Write to Paul Vieira at paul.vieira@wsj.com
(END) Dow Jones Newswires
03-09-26 1909ET
