In August 2023, the Iranian government introduced a new phase of internet restrictions. After a prolonged struggle, two pivotal components of these restrictions, the Regulatory Framework for Online Services (previously known as the “User Protection” bill) and the Layered Internet System, were publicly enforced for the first time that month. The government has also expressed its preparedness for the official rollout of these measures.

The Cyberspace Service Regulation System Act failed to pass parliament due to public opposition. Nevertheless, cooperation and coordination among various government entities, supportive parliament members, and the Supreme Council of Cyberspace paved the way for the extralegal implementation of this plan, bypassing the need for approval from the parliament and the Guardian Council.

During an interview, Gholamreza Nouri Ghezeljeh, a member of parliament, pointed out that although the parliament temporarily paused the evaluation of the Cyberspace Service Regulation System Act, authorities are actively implementing its provisions. In this situation, as per Nouri Ghezeljeh’s perspective, the presidential administration can take action to prevent the extralegal implementation of this plan. This would offer a chance for the situation to potentially change with the next presidential administration.

The second aspect of the restriction, the layered internet system, was also officially put into action during this period, albeit in a limited capacity. On August 27, Mehdi Bagheri, a member of the filtering committee officially known as “The Committee to Determine Instances of Criminal Content,” informed The Iranian Students’ News Agency (ISNA) that they are providing unrestricted internet access to students, university professors, business owners, and individuals with professional requirements for unrestricted internet.

The idea that has been pursued for a while, which involves providing internet services with labels such as “Internet for Technologists” (meaning startups and business owners), “Internet for University Professors,” and “Internet for Journalists,” represents a type of discriminatory service offering. In the layered internet system, individuals gain access to specific portions of internet content corresponding to their social status. Operators authorized by the government establish and determine the extent of this access. For example, journalists can access news websites, but their ability to visit other websites (like YouTube) may be restricted.

Executing such an internet project may result in the growth of the black market for internet access, offering a fresh revenue stream for the government. Additionally, government-operated VPNs enable authorities to oversee and regulate users’ content consumption. In emergencies or security concerns, they can restrict people’s ability to connect and block the transmission of information to the outside world.

Moreover, during this period, certain measures from the 7th development plan were put into action to impose greater restrictions on users. One of these initiatives involves a resolution by the Integration Commission of the parliament, assigning control over cyberspace security and filtering to the National Center of Cyberspace. This institution is legally supervised by the Supreme Council of Cyberspace and Ali Khamenei, granting it greater autonomy and quicker execution capabilities to circumvent parliamentary procedures and enact laws.

Key state institutions supporting the Cyberspace Service Regulation System Act have also taken action by shutting down the internet and initiating the layered internet system without legal approval. They exercise control over portals and platforms by regulating them according to the state’s directives. Additionally, they either support revolutionary forces or seize non-aligned platforms, effectively shaping the landscape.

In this report, we examine the significant events in Internet policy that happened in August 2023. We aim to assess their importance in users’ lives and understand how they have impacted the digital experiences of Iranian citizens.

National-Level Portal Creation Requires Ministry of ICT Permission

According to IRNA, member of Parliament and spokesperson of the Integration Commission Mohsen Zanganeh announced several resolutions related to the 7th Development Plan Bill on August 5, 2023. As per these resolutions, creating a national-level portal without approval from the Ministry of Information and Communications Technology is prohibited. All entities, except military and security structures, must utilize a cloud system for sharing their information.

 

National Center of Cyberspace Takes Command of Cybersecurity and Filtering Decisions

On August 7, Mohsen Zanganeh, the spokesperson of the Integration Commission, announced that this commission had approved entrusting the National Center of Cyberspace with the command of cybersecurity and its management in Iran, as well as any decisions related to the implementation of content filtering.

 

Minister of ICT’s VPN Plan Submitted to Parliamentary Committee

The Minister of Information and Communications Technology blamed VPNs for causing network problems in the Iranian parliament on August 22. He emphasized the necessity of a dedicated law for this matter and confirmed that he would present his proposal to the parliamentary committee. He also expressed his hope that Iranians would not need to use VPNs to access the internet for their needs.

Ebrahim Raisi Calls for Accountability of Foreign Platforms to Enter Iran

The President of Iran said in a press conference on August 29 that foreign platforms had to be accountable for the “information and communications they gather within the country” if they wanted to operate in Iran. He claimed that they should be as accountable to Iran as they are to the United States, Europe, and the rest of the world.

 

Raisi indirectly mentioned the layered internet system, referring to it as the “Internet for researchers to access articles,” and discussed the rights of gamers to access the Internet. However, he did not address the broader public’s right to access the Internet, regardless of their social class or how they utilize it.

 

Filtering Committee Declares Unofficial Online Currency Trading as Illegal

According to IRNA, on August 22, The Committee to Determine Instances of Criminal Content, a government body that decides what content is illegal on the internet, added a new paragraph to its resolutions from its 138th meeting. The new paragraph, “E12”, covers “illegal foreign exchange activities in cyberspace, such as currency trading, remittances, foreign exchange transactions, foreign exchange brokerage, and advertising of these activities in cyberspace, without the permission of the central bank”. These activities are now considered as examples of criminal content.

 

Government’s Aim: Combat Money Laundering through Approval of Cryptocurrency Regulations and Bill, Says Legal Deputy of the President

As reported by ISNA, Mohammad Dehghan, the legal deputy of the Iranian president, stated on August 22, “Within the government, we have approved a comprehensive cryptocurrency regulation and bill, which we will promptly submit to parliament.” He emphasized that this regulation would prevent cryptocurrencies from serving as a means for money laundering.