Iran Targets Google, Meta, Amazon & Microsoft: Plans to Charge Fees for Undersea Internet Cables in Strait of Hormuz

Iranian state-linked media have proposed that Iran charge Google, Meta, Amazon and Microsoft fees for undersea internet cables passing through the Strait of Hormuz. The plans include licensing charges, requirements for the firms to operate under Iranian law and exclusive Iranian control over cable repairs and maintenance.

They have emerged amid regional tensions and peace talks following the recent conflict in which Iran restricted shipping through the waterway.

Iran Proposes Fees for Undersea Cables in Strait of Hormuz

Tasnim and Fars, outlets with links to Iran's Revolutionary Guards, set out a three-step plan in recent Iran International articles. Foreign companies using the cables would pay initial licensing fees and annual renewals. Major technology companies including Meta, Google, Amazon and Microsoft would be required to operate under Iranian law. Iranian firms would gain exclusive rights to carry out repairs and maintenance, allowing charges for those services.

Tasnim suggested the approach could net Iran hundreds of millions of dollars annually — equivalent to around £149 million ($200 million) or more — and turn the strait into a strategic centre for wealth generation. The articles noted that submarine cables carry more than $10 trillion in financial transactions each day.

Military spokesperson Ebrahim Zolfaghari stated on X that 'We will impose fees on internet cables.' Hossein Ali Hajideligani, a member of parliament's presiding board, described the Strait of Hormuz as 'a God-given treasure, like other mines and reserves placed at Iran's disposal.' Lawmakers have discussed comparable measures.

Clips on Instagram have amplified coverage of the proposals, highlighting how Iranian media suggested charging fees to companies such as Amazon and Meta for the undersea cables.

Cables Support Gulf AI Projects Despite Small Global Share

Five to seven major submarine cable systems as reported by Time, including AAE-1 and SEA-ME-WE 5, transit the strait and serve Gulf states. Although they represent less than 1 per cent of global international internet bandwidth, the routes are essential for regional connectivity and the low-latency data flows needed for artificial intelligence.

They support substantial AI investments, including Microsoft's multi-billion-dollar projects in the United Arab Emirates and partnerships involving Amazon and Google in Saudi Arabia. The cable proposals follow Iran's closure of the strait to most shipping during the conflict that started in February.

Ceasefires are in place and peace negotiations continue, with parallel suggestions for vessel tolls also under consideration. Disruptions to the cables would mainly disrupt services in the Gulf, where routing options are constrained for some users, while wider global effects would be more limited.

Legal Doubts and Enforcement Challenges Remain

The scheme has been described as legally dubious by analysts. It would rely on Iran's territorial claims under the UN Convention on the Law of the Sea as mentioned in The Guardian report and potentially on pressure rather than established practice for subsea infrastructure.

Many cable segments pass through or near waters under Omani jurisdiction. Billing individual companies is complicated because internet traffic mixes data from numerous sources. Experts have observed that similar fee collection would depend on intimidation, with no clear precedent for submarine cables. Cable faults occur frequently worldwide from accidents, but security conditions would complicate repairs.

The proposals have not been turned into official government policy or legislation.Tehran's interest in the cables forms part of a broader pattern of seeking greater control over transit through the strategic waterway for both energy supplies and digital communications.