TikTok Files Challenge against Canadian Government Order to Dissolve its Business in the Country

The TikTok app logo is seen in this illustration taken, August 22, 2022. (Reuters)
The TikTok app logo is seen in this illustration taken, August 22, 2022. (Reuters)
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TikTok Files Challenge against Canadian Government Order to Dissolve its Business in the Country

The TikTok app logo is seen in this illustration taken, August 22, 2022. (Reuters)
The TikTok app logo is seen in this illustration taken, August 22, 2022. (Reuters)

TikTok has challenged a Canadian government order to shut down the Chinese video-sharing app's business operations in the country that was imposed over national security concerns.

The company said Tuesday that it filed an application for a judicial review with the Federal Court in Vancouver on Dec. 5, which seeks to set aside the order for TikTok to wind-up and cease its business in Canada.

The Canadian federal government last month announced it was ordering the dissolution of TikTok Technology Canada Inc. after a national security review of its Chinese parent company ByteDance Ltd, The AP reported.

The government is not blocking access to the TikTok app, which will continue to be available to Canadians. TikTok said it has 14 million users in Canada, which is about a third of the population. It has offices in Toronto and Vancouver.

The wildly popular platform is owned by ByteDance, a Chinese company that moved its headquarters to Singapore in 2020, but is under increasing pressure in the West. It's facing a possible ban in the US and intensifying scrutiny in Europe over issues including election influence campaigns allegedly coordinated by Moscow.

TikTok argues in its court application, which was posted online, that Industry Minister François-Philippe Champagne's decision was “unreasonable” and “driven by improper purposes.” It says the order is “grossly disproportionate” and the the national security review was “procedurally unfair.”

The review was carried out through the Investment Canada Act, which allows the government to investigate foreign investment with potential to harm national security.

Champagne said in a statement at the time that the government was taking action to address “specific national security risks,” but did not elaborate. His office said in response to the filling that the government’s decision was informed by a “thorough national security review and advice from Canada’s security and intelligence community.”

TikTok said Champagne “failed to engage with TikTok Canada on the purported substance of the concerns" that led to the order.

It argues the government ordered “measures that bear no rational connection to the national security risks it identifies" and that the reasons for the order “are unintelligible, fail to reveal a rational chain of analysis and are rife with logical fallacies.”

The platform says there were “less onerous” options than shutting down its Canadian business, which it said would eliminate hundreds of jobs, threaten business contracts and “cause the destruction of significant economic opportunities."



Elon Musk's X Lifts Price for Premium-plus Tier to Pay Creators

Elon Musk acknowledged his bid to buy Twitter may fail, but said he has a "plan B" - Copyright POOL/AFP/File Britta Pedersen
Elon Musk acknowledged his bid to buy Twitter may fail, but said he has a "plan B" - Copyright POOL/AFP/File Britta Pedersen
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Elon Musk's X Lifts Price for Premium-plus Tier to Pay Creators

Elon Musk acknowledged his bid to buy Twitter may fail, but said he has a "plan B" - Copyright POOL/AFP/File Britta Pedersen
Elon Musk acknowledged his bid to buy Twitter may fail, but said he has a "plan B" - Copyright POOL/AFP/File Britta Pedersen

Elon Musk-owned X raised the price of its premium-plus plan in several markets from Dec. 21 as the social media company looks to boost payment for creators on its platform.

The top-tier plan is now priced at $22 a month in the US, up from $16 earlier, according to a blog post. Prices for the basic tier and premium subscriptions remain unchanged at $3 and $8, respectively, Reuters reported.

X changed its revenue-sharing practices in October to ensure subscription fees would more directly contribute to creator payouts and that they are compensated on content quality and engagement rather than ad views alone.

The updated pricing applies to new subscribers, while existing members will retain their current rates until Jan. 20.

X offers premium-plus subscribers ad-free browsing and features such as expanded access to the Grok AI chatbot and Radar, which offers real-time analytics on emerging trends through keyword tracking.

Subscriptions are a key part of Musk's strategy to drive revenue growth at X, the platform which was known as Twitter before the billionaire purchased it and had long relied on advertising dollars.