It appears that Malaysia’s new social media regulation to hold platforms accountable has hit a snag as there’s a pushback from several industry players.
Asia Internet Coalition (AIC), an organisation which represents multiple tech giants including Grab, Meta, Apple, Amazon, Google, Yahoo, Rakuten, X and LinkedIn, have raised concerns about Malaysia’s upcoming licensing requirement for Social Media and Instant Messaging platforms. In an open letter to Prime Minister Anwar Ibrahim, they urge the government to pause the new framework and to carefully consider how this upcoming licensing regime aligns with its broader economic goals before proceeding further.
The Coalition believes the framework introduced by the MCMC is unworkable for the industry and will adversely impact innovation by placing undue burdens on businesses. It added that the move would hinder investments and deter future ones due to the complexity and cost of compliance.
No formal discussions created a great deal of uncertainty
AIC said there had been no formal public consultation on the matter before publication of the Information Paper and FAQs on 1st August 2024. It said that the lack of critical discussions has created a great deal of uncertainty in the industry regarding the scope of the obligations and what exactly these platforms would be signing up for. It stressed that no platform can be expected to register under these conditions.
It acknowledged the need to address scams and online harms which include online gambling, harm against minors and hate speech, and AIC shares the same concerns and is dedicated to collaborating on solutions to protect Malaysian users while fostering innovation.
However, the organisation says the proposed implementation time leaves the industry with insufficient clarity and inadequate time to fully grasp the implications.
AIC says they are committed to working together on the critical issues but it is essential that the collaboration must be grounded in transparency, fairness and reasonable timelines to ensure an effective and sustainable outcome for all stakeholders.
The Malaysian Communications and Multimedia Commission (MCMC) announced the new regulatory framework which require all social media and instant messaging platforms with at least 8 million Malaysian users to apply for a licence.
The new regulation will be enforced from 1st January 2025 and any applicable platforms that continue to operate without a licence will be deemed illegal under the Communications and Multimedia Act (1998).
At the moment, the applicable platforms that require a licence include Facebook, Facebook Messenger, Instagram, TikTok, WhatsApp, Telegram, WeChat, X, and YouTube.
If convicted, the service provider can be fined up to RM500,000, or face imprisonment up to 5 years, or both. The platforms can be liable for a further fine of RM1,000 for every day during which the offence is continued after conviction.
Communications Minister Fahmi Fadzil recently said that he expects social media platforms to submit their licensing applications as early as October.
