Iraq’s New E-Commerce Regulation

Iraq’s New
E-Commerce Regulation

Corporate Commercial / Iraq

The Regulation applies to all e-commerce activities where either the seller or the customer is in Iraq.Contents

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Law Update: Issue 378 - Real Estate & Construction and Hotels & Leisure

Iraq’s New E-Commerce Regulation

Aro Omar
Senior Associate,
Corporate Commercial

Ali Al Dabbagh
Senior Associate,
Corporate Commercial

Shangar Hussein
Intern,
Corporate Commercial

Introduction

In a significant move to modernize its digital economy, Iraq has issued E-Commerce Regulation No. 4 of 2025, effective from April 2025 (the “Regulation”). This Regulation, introduced under Cabinet Resolution No. 135 of 2025 and published in the Official Gazette (Issue No. 4818 on 10 March 2025), establish a comprehensive legal framework for e-commerce in Iraq. The Regulation address licensing requirements, consumer protection, data privacy, advertising standards, and coordination with tax and customs authorities, attempting to align Iraq with global e-commerce standards. We go through some of the key provisions of the law below.

We note that, to our knowledge, the Regulation has not yet been implemented in practice. Its implementation appears to be pending the establishment of the online licensing platform by the Ministry of Trade, as well as the possible issuance of instructions by the General Commission for Taxes (“GCT”). We also note that the Communication and Media Commission (CMC) has, recently, circulated draft regulations concerning digital platforms (including e-commerce activities); however, to our knowledge, these have not been formally issued to date.

Brief Overview of Key Provisions of the Regulation

Scope and Definitions
The Regulation applies to all e-commerce activities where either the seller or the customer is in Iraq. “E-Commerce” is defined as all commercial activities conducted via the internet or other electronic means, including the sale of goods and services, online marketing, and managing E-Commerce transactions. An “E-Commerce Merchant” refers to any natural or legal person (Iraqi or foreign) engaging in E-Commerce activities as a profession.

The Regulation applies to all e-commerce activities where either the seller or the customer is in Iraq

Licensing Requirements
The Ministry of Trade is designated as the regulator and licensing authority, responsible for establishing an official e-government portal for managing E-Commerce business licenses.E-Commerce Merchants (as defined in the Regulation) must obtain a license from the Ministry of Trade before engaging in E-Commerce activities in Iraq. The licensing process is electronic, requiring submission of an application through the Ministry’s platform, payment of prescribed fees, and compliance with technical regulations. Licenses are valid for three years and are renewable. Merchants must also comply with Iraq’s general business laws, including commercial registration and adherence to the Trademark and Commercial Data Law No. 21 of 1957.Consumer Protection

The Regulation addresses consumer protection and data privacy. Merchants are required to provide the following information on their E-Store (“E-Store” is defined as any e-platform used by the E-Commerce merchant to showcase products or services to customers, including mobile applications, websites, social media, and other modern technologies that facilitate the electronic connection between E-Commerce Merchants and customers). This information includes but is not limited to information about their identity, E-Commerce license number, product/service details, customer data privacy policy pricing, terms of sale, and return policies for the products being sold.Data Privacy
E-Commerce Merchants are required to implement secure systems to safeguard customers’ personal data, collect only necessary information, and obtain explicit consent before using or sharing customer data. In the event of a data breach, merchants must promptly notify affected customers and relevant authorities, detailing the breach and remedial actions taken.Taxation of E-Commerce Activities
The Regulation provides that the Iraq tax authority, namely the General Commission for Taxes (the “GCT”), is to establish a clear mechanism for calculating and collecting taxes levied on E-Commerce activities. To this date, we are not aware of the GCT issuing such regulations, however, this is generally expected and we are monitoring for any such developments.

Potential Implications for Domestic & Foreign BusinessesPending implementation of this Regulation by the Ministry of Trade in practise, we note that domestic and foreign e-commerce startups and established retailers transitioning online must formalize their operations by obtaining the required E-Commerce Licensing, developing privacy policies, securing IT systems, training staff, and adhering to the other provisions of the Regulation. Non-compliance risks can lead to monetary penalties and potentially suspension of business by the Ministry of Trade.How Al Tamimi & Company Can AssistAl Tamimi & Company, the leading law firm in the Middle East, is well-positioned to guide clients through this transition. With a dedicated Technology, Media & Telecommunications practice and on-the-ground presence in Iraq, the firm has extensive experience advising on e-commerce regulations and digital transformation laws across the region. Please reach out should you have any inquiries on the Regulation and its implications.

For further information,
please contact Aro Omar and Ali Al Dabbagh.

^{Published in}^{June 2025}