Peregraf — Iraq's Communications and Media Commission (CMC) announced Monday that it has canceled its settlement agreement with Korek Telecom, ordered a halt to all company operations, and begun legal and regulatory procedures against the telecom operator over what it described as repeated violations of contractual obligations.
In a statement issued on June 2, the commission said the decision was based on provisions of the settlement agreement and followed Korek's failure to comply with its financial and contractual commitments despite being granted multiple opportunities to rectify its legal status.
The CMC said the measures include suspending all company operations and taking legal action against Korek's assets and property in coordination with relevant authorities.
CMC Moves Against Assets
The commission said it will implement all necessary legal, regulatory, and technical measures to enforce the decision, recover debts, and protect state funds.
It also directed its Consumer Voice Department to receive and process complaints from Korek subscribers affected by the decision, while holding the company fully responsible for any legal and financial consequences arising from its alleged breaches.
The regulator further called on government institutions, private entities, and citizens to refrain from entering into any new contracts or business dealings with Korek.
Escalation After Asset Seizures
The move follows statements made on May 23 by Balegh Abu Kalal, head of the CMC's executive body, who said the commission had already seized Korek's movable and immovable assets as part of efforts to recover what officials claim are massive unpaid financial obligations.
According to Abu Kalal, Iraqi banks were contacted to collect financial dues linked to Korek's accounts over the past three years.
"The Commission has recovered all of the company's funds and financial assets after seizing its movable and immovable property," he said, adding that Korek no longer possesses sufficient assets or real estate to cover the scale of its obligations.
Dispute Over Nearly $1.5 Billion
The dispute between Korek and Iraq's telecommunications regulator has intensified in recent years.
Iraqi lawmakers previously estimated Korek's debts to the commission at approximately two trillion Iraqi dinars (around $1.5 billion), largely related to unpaid licensing fees and regulatory obligations.
The conflict has already affected telecommunications services across Iraq and the Kurdistan Region.
In November 2023, the CMC blocked portions of Korek's services over unpaid dues. In February 2025, the CMC escalated the measures by suspending the company's internet services, citing continued noncompliance.
Uncertain Future for Korek
Abu Kalal has rejected claims that the commission owes money to Korek, arguing that court decisions issued outside the specialized telecommunications appeals framework have "no legal value."
He said the commission had successfully challenged such rulings before competent judicial authorities.
The latest decision marks the most serious regulatory action yet against Korek and raises new uncertainty about the future of one of Iraq's largest telecommunications operators as authorities seek to recover billions of dinars in alleged unpaid obligations.