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List of countries where the Firefox built-in VPN is available: Unable to find the built-in VPN in Firefox

No, it's not a matter of sanctions.

As of this afternoon, it displays a message stating that it is not supported in Iran. Given that the internet is subject to sanctions—necessitating the use of tools to bypass restrictions—why has this access been removed, and why has this issue arisen?

It was never available or offered in the region. There are no local endpoints for the service. (In other words — if you manually changed internal settings to connect "somewhere" despite that, you've put the load on some other market's infrastructure, which the service provider might have disliked, and made adjustments for that.)

So, nothing has been officially confirmed, right? But why were the service providers fine before, and now things have turned out this way?

You can potentially thank the "unofficial" VPN apps parasiting on the free offering, mostly coming from the regions where the service was not actually even rolled out. I'm not a lawyer so I haven't checked the Terms of Service, how enrolling into features normally unavailable fares in that matter, but this might be the answer to that. (Note: the exact same vendor providing the MASQUE network is the same as the one providing bot/abuse protections for Mozilla services, so it's not hard to see the connection between the two, as both are "under the same roof".)

Look, if Firefox provided an official client for users in sanctioned countries—where making purchases in dollars or other foreign currencies is impossible—would anyone even bother using unofficial clients? Of course not. So, please don’t be too quick to judge. We are simply struggling to cope with sanctions and the dire situation in Iran; having support from Firefox would be a huge help for Iranians—and for people in other sanctioned nations as well. We desperately need assistance from abroad. The state of the internet here is in shambles and getting worse by the day. I urge you to bring back this VPN beta for Iran.

Does it work today? I mean in Firefox.