In depth
Objective of the MoU
Currently, the Competition Act 2010, as enforced by MyCC, does not apply to any commercial activity regulated under the Communications and Multimedia Act 1998, which in turn, is under the purview of MCMC. Notwithstanding this sectoral carve-out from the Competition Act, there are still issues which require both sectoral expertise as well as antitrust enforcement experience, particularly in the dynamic and ever-evolving digital ecosystem consisting of a borderless economy, multi-sided platforms and SuperApps.
Better Synergies and Joint Enforcement
The signing of the MoU is built on existing and long-standing co-operation between both regulators. Through the MoU, the regulators will form a powerful, strategic alliance and create synergies in addressing antitrust issues in the digital regulatory landscape together, and improve inter-agency coordination and joint enforcement activities.
Provide clarity on regulatory framework and issue categorisation.
The MoU also intends to provide clarity in the current regulatory framework and process. Under the MoU, it is envisaged that the MyCC and MCMC would work together to define the specific areas of responsibility of each agency, and establish a clear regulatory framework under which each issue is appropriately assigned to the relevant body (i.e., issue categorization).
Promote transparency and accountability in regulatory process
With a clear delineation of responsibilities, the MoU would also allow for better transparency and accountability in the overall regulatory process. Ultimately, the MoU will prioritise the interest of consumers, and will seek to shape a more competitive and prosperous digital economy in Malaysia.
What is next?
Legislative amendments and Market Review on Digital Economy
During the MoU signing ceremony, MyCC had further indicated that MyCC is seeking to table the amendments to the Competition Act 2010 by October 2023, and that subject to budget approvals, MyCC is looking to conduct a market review on the digital economy market in 2024 as well.
© 2023 Wong & Partners. All rights reserved. Wong & Partners, member of Baker & McKenzie International. This may qualify as “Attorney Advertising” requiring notice in some jurisdictions. Prior results do not guarantee a similar outcome
