According to reports this occurred at a major road injunction in the capital, Baghdad. The videos of the incident were then spread onto social media.
Police say a technician who allegedly had financial issues with the company that runs the screens has been arrested.
Since 2022 the largely Islamic and conservative state said it planned to block pornographic websites but many are still accessible.
The government has also had a crackdown on what it calls “indecent content” on social media where YouTubers and TikTokers have been imprisoned.
Om Fahad is one of the content creators who was arrested for dancing to Iraqi pop music in tight clothing. She was sentenced to half a year in prison earlier this year.
According to reports Iraq has created a specialised committee that reviews content on TikTok , YouTube and other popular platforms for videos that are deemed offensive to society.