The Economics of Internet Shutdowns: Who Profits?

Internet shutdowns, often perceived as authoritarian measures to suppress dissent, are complex events with a wide array of beneficiaries beyond the governments that implement them. A significant number of documented internet shutdowns occurred in 2023, particularly in regions with ethnic minorities, active protest movements, or electoral disputes. These shutdowns are executed through bureaucratic processes where governments issue orders to telecommunications companies, which then throttle or block internet traffic at critical network exchange points. This compliance is often driven by the companies' licensing dependencies and relationships with ruling elites.

I mapped who profits when a country’s internet gets shut down — it’s never who you think

The primary beneficiaries of internet shutdowns are the governments that utilize them to stifle opposition. However, a secondary layer of beneficiaries includes surveillance technology vendors such as Sandvine and Allot Communications, which provide the tools necessary for targeted shutdowns. During protests, such as those in Iran in 2022, these technologies enable selective throttling of specific platforms, showcasing the vendors' capabilities and facilitating future sales.

I mapped who profits when a country’s internet gets shut down — it’s never who you think

Interestingly, the shutdowns also create a surge in demand for Virtual Private Networks (VPNs), which are used by individuals attempting to bypass restrictions. This demand benefits commercial VPN providers, some of which may have questionable ties to the very governments enforcing the shutdowns. The economic dynamics reveal that shutdowns generate revenue streams that would not exist without the repression.

I mapped who profits when a country’s internet gets shut down — it’s never who you think

A less visible but significant layer of beneficiaries includes political risk consultants, cyber insurance underwriters, and business continuity firms that have developed practices around internet disruptions. These entities profit from advising both the governments that enforce shutdowns and the multinational corporations that need to navigate these disruptions. For instance, a major Western consulting firm may provide risk assessments to companies while simultaneously advising telecom regulators in shutdown-prone countries, effectively profiting from both sides of the disruption.

I mapped who profits when a country’s internet gets shut down — it’s never who you think

Despite the evident economic incentives tied to internet shutdowns, accountability at the corporate level remains minimal. While governments may face international scrutiny for implementing shutdowns, the companies that provide the necessary technology and infrastructure often escape consequences. The Guiding Principles on Business and Human Rights, endorsed by the UN, emphasize corporate responsibility in respecting human rights, yet enforcement remains weak. Organizations like Access Now advocate for legal frameworks to hold these companies accountable, but compliance is largely voluntary.

I mapped who profits when a country’s internet gets shut down — it’s never who you think

The narrative surrounding internet shutdowns often simplifies the issue to a binary of oppressors and victims, neglecting the complex web of corporate and geopolitical actors that profit from these events. As shutdowns continue to occur globally, understanding the economic motivations behind them is crucial. The cycle of disconnection and profit is deeply embedded in the global economy, suggesting that without addressing these underlying incentives, the political will to prevent such shutdowns will remain weak. Recognizing the financial dynamics at play is essential for fostering a more comprehensive dialogue about internet governance and human rights.

I mapped who profits when a country’s internet gets shut down — it’s never who you think