Internet disruptions in Iran are inflicting a daily economic toll of up to 600 billion tomans (around $4.3 million) on online businesses, according to recent estimates. The damage is particularly severe for digital marketing, e-commerce, and online tourism sectors, which heavily rely on social media platforms for customer engagement and sales.
Social commerce, a rapidly growing segment of the digital economy, has become a lifeline for many Iranian entrepreneurs and small businesses.
This innovative model allows consumers to discover, evaluate, and purchase products directly within social platforms—eliminating the need to switch between apps or websites. However, frequent and widespread internet outages are undermining this seamless experience, causing significant losses and operational challenges.
According to a report by the Communications Ministry, internet disruptions have led to a sharp decline in platform sales, reduced advertising revenue, and disrupted digital education and service chains. The instability has also eroded public trust, discouraged investment, and slowed innovation across the digital ecosystem.
Instagram, with 31 million active users and a 47% market share, remains the most popular social platform in Iran, followed by Telegram and WhatsApp. These platforms are not only social hubs but also key sales channels for local businesses. Yet, during outages, companies are forced to shift to domestic platforms that lack the necessary infrastructure to support social commerce, leading to a further drop in sales.
One of the most damaging effects of internet instability is the loss of frictionless shopping experiences. Social commerce thrives on instant access to live content, product tags, and secure payment systems. When these are disrupted, the conversion rate plummets, and customers abandon their purchases.
Live selling, a popular method among Iranian vendors, also suffers as it requires stable and high-quality internet connections. Without real-time feedback and customer interaction, trust and engagement decline, further hurting sales.
Experts warn that unless internet stability is improved, the digital economy will continue to face setbacks. The government has acknowledged the issue, but concrete solutions remain elusive.
For now, businesses are left to navigate a volatile landscape, where each outage brings a new wave of financial losses and uncertainty.
