[48154] The Digital Economy Crisis in Iran: A Sharp Decline in Sales and Mass Layoffs Following Internet Restrictions

The Collapse of Iran's Digital Economy Following Censorship

Iran's virtual business sector is facing an unprecedented crisis, according to reports from May 3, 2026. Reza Olfat-Nasab, head of the Virtual Business Association, stated that according to Iran International, "the internet in Iran has no defined owner," leaving business owners without an address for negotiations regarding the future of the country's digital economy.

The consequences of this policy, which includes what is known as the "Pro-Internet" [policy], have led to a dramatic 40% to 50% decrease in sales for many businesses, with some reporting sales near zero. According to Iran International, the situation has forced many companies to take painful efficiency measures, with layoffs reaching, in some cases, up to 60% of their workforce.

Conversely, the Telegram channel Payam Iran, which is identified with harsh opposition to the Iranian regime, expands on the picture and claims it is a "60-day disconnection of the international internet by the regime." According to the channel's data, the damage to sales reached the 40% to 70% range, noting that the resilience of small businesses under these conditions is estimated to last only a month or two.

While both sources point to a severe systemic failure, there is a difference in terminology: while Olfat-Nasab presents the crisis as a result of regulatory ambiguity, Payam Iran places the blame directly on the "Ayatollah regime" and the deliberate policy of blocking networks.