The new version of the “Cyberspace Regulation” project, which includes obligating digital service providers to verify the identity of users, broad financial and administrative penalties, in addition to redistributing internet management powers among Iranian institutions.
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The text remains a draft parliamentary bill and is not yet in effect. MP Hossein Ali Haji Deligani, whom the attributes to the drafter, stated that its general principles were approved within a joint committee and that the details are still under review. However, the newspaper cited conflicting accounts from other MPs regarding the committee's work and confirmed that the bill has not yet reached the plenary session of parliament, leaving its legislative status uncertain.
Identity verification
Article Five stipulates that providing the service before verifying the user's identity is a violation, according to the regulations of the "Recognized Identity System in Cyberspace." The draft does not specify the nature of the data that the platforms will collect, how long they will retain it, or which institutions have the right to access it.
The draft establishes a mechanism for verifying children's ages, making the provision of digital products and services to those under 16 contingent upon age verification via the national identity database, without disclosing the service provider's personal data. However, the text contains an inconsistency in the definition of a child, as Article 6 defines the age as under 16, while the tables in Article 4 refer to under 18.
The draft allows regulators to impose one or more penalties on violating service providers, starting with publicizing the violation in newspapers, and going as far as restricting advertisements for a period ranging from 6 months to 3 years, and preventing the attraction of new users for a period ranging from 5 days to 3 months.
It also proposes fines ranging from 1 to 10% of the service provider’s annual revenue, denial of government facilities for up to 3 years, as well as reducing, suspending or canceling the license.
The draft does not specify whether the fine will be calculated based on gross or net revenue, or on the company's total revenue or only the revenue of the offending service. Deputy Minister of Communications Ehsan Chitsaz also criticized the phrase "license revocation for a period of one to three years," explaining that revocation is usually permanent, while suspension is for a fixed term.
Violations are reviewed by a three-member panel comprising a judge appointed by the head of the judiciary, a deputy head of the National Cyberspace Center, and an expert nominated by the National Federation of Virtual Businesses. Its decisions are subject to appeal before the Administrative Court of Justice.
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