Restrictions and Legal Challenges For Foreign Investment in the Media Market in Iran

Statistics show that in general a high degree of foreign investment restrictiveness exists in one of the primary economic sectors, that is, media, in many countries, including in iran, some oecd and g-20 countries. it has also been shown that restrictions in some primary sectors, such as mining and media may be more extensive than others in some countries, due to their respective policies and legal challenges.since the last decade, and especially after lifting up the economic sanctions against iran, the policy and laws on foreign investment in iran have moved towards an ‘open for investment’ approach. the current legal system provides appropriate protections for foreign investors. despite this, in terms of media market, there still exist specific restrictions and legal challenges for foreign investment in iran. a well-developed legal framework, inter alia, is required for foreign investment in a specific sector, which would play a significant role to play for encouraging investment. one special challenge exists almost in many countries in relation to media, especially digital media. the speed of innovations in social media and media market is much faster than the speed of the development of laws and regulations in iran. many legal debates have come to the fore after a new technology is introduced or being used by people. this means the existing laws and regulations either have not developed fully yet or do not cover, to some extent, all aspects of innovations or some areas of law on the media market. one of the important issues which has not properly developed is the question of foreign investment in the media market, taking into account the indispensable new technologies. in this relation, specific old and new regulations on investment and media in iran must be taken into consideration. the discussion on the subject of foreign investment and media market in iran involves three interlinked questions as follows: first, the iran’s regulation of innovations in the media market in general, second, the regulation of foreign investment in iran from a general perspective, and finally, the regulation of foreign investment in the media market. the purpose of this paper is to define precisely and clarify restrictions on foreign investment; limitations to fdi in iran established by the authorities; conditions for the investment by foreigners; regulatory challenges; and to discover and explain the legal solutions for the existing challenges as well as the common and specific features of different methods of the possible foreign investment in the media market in iran. for example, it is of high importance to know that the 2002 fippa act, which is considered as a turning point in the economy of iran, and is as the basic and dominant law on foreign investment, does not cover commercial risks; however, there are some cases where the government will compensate. this paper is based on a practical perspective so that the post-sanctions situations and methods of foreign investment become comprehensible. taking into account lifting economic sanctions, the examination and analysis of the relevant legal issues, laws and regulations in this paper will contribute to the development of the law in this field and will shed light on social media strategy, situation, and the legal developments. moreover, it will (a) help foreign investors and national private-sector stakeholders to be aware of risks associated with the legitimate investment in the market before entering into the market, by means of providing a comprehensive view about iranian legal system, (b) find legal solutions and answers for the relevant questions, (c) help to resolve the existing ambiguities and doubts, and (d) try to contribute to develop the media market laws and regulations in iran, and (e) pave the way for further research on the investment opportunities and limitations in the iranian legal system.

Restrictions and Legal Challenges for Foreign Investment in the Media Market in Iran

Statistics show that in general a high degree of foreign investment restrictiveness exists in one of the primary economic sectors, that is, media, in many countries, including in Iran, some OECD and G-20 countries. It has also been shown that restrictions in some primary sectors, such as mining and media may be more extensive than others in some countries, due to their respective policies and legal challenges.Since the last decade, and especially after lifting up the economic sanctions against Iran, the policy and laws on foreign investment in Iran have moved towards an ‘open for investment’ approach. The current legal system provides appropriate protections for foreign investors. Despite this, in terms of media market, there still exist specific restrictions and legal challenges for foreign investment in Iran. A well-developed legal framework, inter alia, is required for foreign investment in a specific sector, which would play a significant role to play for encouraging investment. One special challenge exists almost in many countries in relation to media, especially digital media. The speed of innovations in social media and media market is much faster than the speed of the development of laws and regulations in Iran. Many legal debates have come to the fore after a new technology is introduced or being used by people. This means the existing laws and regulations either have not developed fully yet or do not cover, to some extent, all aspects of innovations or some areas of law on the media market. One of the important issues which has not properly developed is the question of foreign investment in the media market, taking into account the indispensable new technologies. In this relation, specific old and new regulations on investment and media in Iran must be taken into consideration. The discussion on the subject of foreign investment and media market in Iran involves three interlinked questions as follows: first, the Iran’s regulation of innovations in the media market in general, second, the regulation of foreign investment in Iran from a general perspective, and finally, the regulation of foreign investment in the media market. The purpose of this paper is to define precisely and clarify restrictions on foreign investment; limitations to FDI in Iran established by the authorities; conditions for the investment by foreigners; regulatory challenges; and to discover and explain the legal solutions for the existing challenges as well as the common and specific features of different methods of the possible foreign investment in the media market in Iran. For example, it is of high importance to know that the 2002 FIPPA Act, which is considered as a turning point in the economy of Iran, and is as the basic and dominant law on foreign investment, does not cover commercial risks; however, there are some cases where the Government will compensate. This paper is based on a practical perspective so that the post-sanctions situations and methods of foreign investment become comprehensible. Taking into account lifting economic sanctions, the examination and analysis of the relevant legal issues, laws and regulations in this paper will contribute to the development of the law in this field and will shed light on social media strategy, situation, and the legal developments. Moreover, it will (a) help foreign investors and national private-sector stakeholders to be aware of risks associated with the legitimate investment in the market before entering into the market, by means of providing a comprehensive view about Iranian legal system, (b) find legal solutions and answers for the relevant questions, (c) help to resolve the existing ambiguities and doubts, and (d) try to contribute to develop the media market laws and regulations in Iran, and (e) pave the way for further research on the investment opportunities and limitations in the Iranian legal system.