By Matt Smith

DUBAI, June 15 (Reuters) - Iraq's telecoms watchdog has scrapped a $100 mln fine imposed on the country's largest mobile phone operator, Zain Iraq, Kuwaiti parent firm Zain ZAIN.KW said on Monday, ending a case that had dragged on for several years.

In 2011, the Communication and Media Commission (CMC) claimed Zain Iraq, which will list on the Iraq Stock Exchange on June 23, had sold mobile phone sim cards without its permission. ID:nL5N0YX1P7

The CMC issued the fine and claimed a further $162 million as its portion of revenue from the mobile accounts in question.

A series of judgements and counter-judgements dragged on for several years, but a CMC committee considering the case has decided not to impose the fine, Zain said in a statement to Kuwait's bourse.

This decision is final, Zain said. CMC withdrew its claim for $162 million in April, Zain told Reuters separately.

Iraq accounted for 29 percent of customers and 33 percent of Zain's revenue in the first quarter.

Zain Iraq's first-quarter profit was $34 million, down from $78 million year earlier, a drop the company blamed on political turmoil that has displaced millions of Iraqis, caused temporary network shutdowns and raised operational costs, plus stiffer competition and foreign exchange fluctuations.

(Reporting by Matt Smith,; Editing by Louise Heavens) ((matt.smith1@thomsonreuters.com; 00971506354039; Reuters Messaging: matt.smith1.thomsonreuters.com@reuters.net))

Keywords: ZAIN IRAQ/REGULATIONS