The internet in Iran: Strict censorship and millions in economic losses

Despite official announcements of easing some restrictions, the internet landscape in Iran complex and heavily censored, with citizens and businesses facing significant difficulties accessing the World Wide Web. This comes amid a government strategy aimed at promoting reliance on the domestic network and digitally isolating the country from the outside world, raising questions about the future of digital freedoms and the technology economy in the country.

The reality of censorship and the national information network

On January 8th, following a wave of popular protests, Iranian authorities imposed a strict digital blackout, including blocking virtual private networks (VPNs) and disrupting satellite internet services like Starlink. While there has been talk of a gradual return to service, actual access remains severely restricted through so-called "whitelists," which allow browsing only specific websites.

This policy dates back to 2016, when Tehran launched the "National Information Network," an internal internet network (intranet) intended to replace the global network. The government justifies this project on the grounds of "cybersecurity" and data protection, but observers and human rights organizations see it as a tool to control the flow of information and prevent the organization of protests via social media platforms.

The war of apps and virtual networks

Iranian users live in a digital "cat-and-mouse game." While authorities block major global platforms such as Instagram, Facebook, X (formerly Twitter), Telegram, and YouTube, citizens resort to VPNs (Virtual Private Networks). However, Communications Minister Sattar Hashemi has confirmed that the availability of these networks fluctuates daily, making connecting to the outside world a difficult and unreliable task.

NetBlocks, an organization that monitors internet freedoms, has confirmed that the current situation is still far from normal, noting that reliance on whitelists and intermittent connectivity reinforces the isolation of Iranians and deprives them of their right to free access to information.

The Iranian economy is paying a heavy price

The effects of the blockade were not limited to the social and political spheres; they also dealt a devastating blow to the Iranian economy, which was already suffering under international sanctions. Official estimates point to alarming figures:

• Losses in the digital economy: The technology sector and startups are incurring daily losses of up to $3 million.
• Total economic losses: Daily losses to the wider economy are estimated at around $35 million as a result of business disruptions and difficulties in trade communication.

Economists believe that the continuation of these restrictions creates cumulative pressure that erodes economic efficiency and leads to capital flight, in addition to eliminating thousands of jobs dependent on digital marketing through the banned platforms. This situation has prompted many local companies to submit formal requests to the authorities demanding the lifting of the restrictions and compensation for the significant damages they have incurred.