Iran's Internet Blackout Continues After IRGC Crushes Protests

Nearly two weeks after Iran severed internet access amid a wave of protests, the country is grappling with severe economic fallout. Businesses dependent on social media for advertising and sales are reporting drastic revenue declines, with many uncertain if or when connectivity will be restored.

The blackout began on January 8 as demonstrations against the regime escalated into widespread unrest, resulting in at least 5,000 deaths according to official reports. The measure was intended to hinder protesters from coordinating actions and disseminating evidence of violence against them.While brief periods of partial restoration have occurred, access to most websites, including search engines like Google, remains restricted or unavailable.

Iran's Vice President for Science and Technology recently stated that internet services would resume "starting this week," but no official timetable has been provided. There is growing concern that the regime may perpetuate restrictions or impose a permanent model akin to North Korea's isolated intranet.

The economic toll is mounting. A Tehran merchant told the Associated Press that his income has plummeted 90% since the protests began, as customers shun local apps promoted by the regime as alternatives. Estimates peg the daily cost of the blackout at between $2.8 million and $37 million. In 2021, social media-driven sales generated approximately $833 million annually for Iranian businesses, while prior internet disruptions have inflicted billions in losses.

Compounding the crisis, the Prosecutor's Office has initiated asset confiscation proceedings against businesses and individuals linked to the protests, including cafes, athletes, and filmmakers. National sentiment and consumer willingness to spend have sharply declined, shifting focus to essential goods only. Businesses are burdened with ongoing fixed costs amid negligible revenues, exacerbating Iran's economic woes.