The Canadian government said on Monday that it will let TikTok continue to operate in Canada and allow an investment by the tech platform to proceed after completing a national security review.

The approval is subject to new legally binding undertakings provided by TikTok Canada, Canadian Industry Minister Melanie Joly said in a statement.

"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," the Canadian government said.

In November 2024, Canada's industry ministry had ordered TikTok's business be dissolved, citing national security risks.

But Canada's federal court in January overturned the government order, allowing the short-video app to keep operating, and told Ottawa to review the case. The industry ministry said at the time that Joly would conduct a national security review.

TikTok also acknowledged the undertakings and said on Monday it had reached an agreement with Canada's government that will keep its local operations in place.

The platform 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, the Canadian government said.

It also said TikTok will implement enhanced protections for minors.

An independent third-party monitor will be appointed to audit and continuously verify data access controls, the Canadian government added.

Prime Minister Mark Carney has been seeking closer ties to China to help offset the damage done to the Canadian economy by U.S. import tariffs.

Canada and other nations have been scrutinizing TikTok because of concerns China could use the app to harvest users' data or advance its interests. TikTok is owned by Chinese company ByteDance.

Last September, TikTok agreed to improve its measures to keep children off its Canadian website and app after an investigation found its efforts to block children and protect personal information were inadequate.

-Kanishka Singh/Reuters