Iran demands Big Tech pay fees for undersea Internet cables in Strait of Hormuz

Iran has announced plans to impose fees on US technology companies for the use of undersea internet cables that traverse the strategically important Strait of Hormuz. This announcement comes amid ongoing conflicts that have already stalled various projects and halted cable repairs in the area. The recent threats from Iranian officials could prompt both tech giants and Gulf nations to seek alternative routes to circumvent this digital bottleneck. Ebrahim Zolfaghari, a spokesperson for Iran’s military and the Islamic Revolutionary Guard Corps, declared in a May 9 statement, "We will impose fees on internet cables." However, the implementation of such fees remains ambiguous, particularly as most cable routes operate in waters controlled by Oman. Despite the uncertainty, Iranian state-affiliated media like Tasnim and Fars have suggested specific methods for charging US tech companies for the use and upkeep of these undersea cables. The proposals have singled out major players such as Meta, Google, Amazon, and Microsoft, indicating that Iran intends to levy license fees on these companies while asserting its exclusive right to maintain the cables. Undersea cables are critical, with over 99 percent of international internet traffic relying on this vast interconnected network, which links continents and islands. Key cables passing through the Strait of Hormuz, including the Asia Africa Europe-1, FALCON, and Gulf Bridge International Cable System, primarily serve Gulf nations. Notably, portions of the FALCON and Gulf Bridge cables run through Iranian territorial waters, as highlighted by Alan Mauldin, a research director at TeleGeography. Reports have also emerged indicating that Iranian state media has issued indirect threats regarding potential damage to these vital cables.