Ruling marks victory for German-based subsidiary of a company sanctioned for “facilitating censorship”
The European Commission voted to remove from its sanctions list the German-based cloud storage provider Softqloud, as well as its Iranian sister company Arvan Cloud, in April 2024. German journalists and international activists previously submitted documentation alleging the companies’ links to the Iranian government and their role in domestic Internet censorship. Arvan Cloud remains the object of the U.S. Treasury’s sanctions for “their roles in facilitating the Iranian regime’s censorship of the Internet in Iran.”
The council decision, dated 4 April 2024 and available here, did not elaborate on its reasoning behind the delisting. In response to a public request for justification submitted by journalists, officials said the decision was “based on the deliberations and assessment in the relevant Council bodies, which are confidential.”
Arvan Cloud has reportedly played a critical role in advancing Iran’s National Internet Network (NIN), which aims to isolate the Iranian population from the global internet and tighten state control over digital communications. Documents published last year by the watchdog group Justice Beyond Borders indicate that the company provided essential infrastructure, such as cloud and Content Delivery Network (CDN) services, which are vital components of NIN. By supporting government agencies, including hosting websites for state offices, and signing a 2021 Memorandum of Understanding (MoU) to enhance NIN infrastructure in five provinces, Arvan Cloud directly and indirectly contributed to Iran’s ability to execute internet shutdowns. These shutdowns, particularly during protests like those in 2019 and 2022-2023, curtailed the public’s access to information, enabling state suppression and human rights violations, including torture, enforced disappearances, and extrajudicial killings.
The report emphasizes Arvan Cloud’s complicity in Iran’s censorship and surveillance activities, highlighting how its executives were fully aware of the company’s role in furthering the state’s agenda. The MoU explicitly required the company to comply with directives for lawful interception and internet restrictions, enabling state security forces to monitor and suppress dissent. Despite international sanctions and the company’s attempts to downplay its involvement, its integration into the NIN project and alignment with government objectives underscore its central role in facilitating a digital crackdown on freedom of expression and privacy. Justice Beyond Borders concludes that Arvan Cloud’s actions amount to significant human rights violations, advocating for its continued sanctioning by global authorities.
Separately, the German news outlet taz.de published an investigation of Arvan Cloud in 2022 linking the German company Softqloud to Arvancloud and showing Softqloud’s involvement in limiting Internet freedom in Iran. Arvancloud later refuted the allegations.