Examining the Basis of Government Civil Liability for the Closure of Online Businesses Due to Filtering

Abstract

Filtering, as one of the state’s main control mechanisms in cyberspace, has had profound consequences for online businesses in Iran. This article examines the basis of state civil liability for the closure of online businesses caused by filtering, analyzing the economic, social, cultural, and legal dimensions of this phenomenon. Findings reveal that filtering leads to severe revenue losses, startup closures, rising unemployment, and reduced domestic and foreign investment. On the social and cultural side, public trust in government declines, digital migration increases, and citizens’ intellectual property rights are infringed. Legally, filtering results in violations of fundamental rights such as job security, free access to information, and the right to property. The theoretical analysis shows that although Iranian law distinguishes between sovereign and proprietary acts, such a division is ineffective in cyberspace, and the state remains liable even for sovereign actions. Theories of fault, risk, and guarantee of rights all highlight the necessity of state accountability. However, compensation faces significant challenges, including legal ambiguities, broad governmental immunity, weak enforcement mechanisms, absence of compensation funds, and financial limitations. The study concludes that achieving effective state liability for the impacts of filtering requires legislative reform, institutional mechanisms, and the adoption of accountability as a guiding principle of digital governance.