KUALA LUMPUR (July 2): The Malaysia Competition Commission (MyCC) said any telco merger is outside its purview.
In a statement on Saturday (July 2), it said whilst the Competition Act 2010 applies to any commercial activity, within Malaysia, the Act clearly stipulates that it does not apply to commercial activities of four sectors, one of which is the telecommunications and multimedia sector.
MyCC’s statement came on the heels of the proposed merger between Digi.Com Bhd and Celcom Axiata Bhd.
The agency thus said it must be emphasised that telecommunications providers’ activities are subject to the scrutiny of the Malaysia Communications and Multimedia Commission (MCMC).
It said MCMC regulates mergers within the telecommunications sector and other competition matters through provisions of the Communications and Multimedia Commission Act 1998.
In this regard, MyCC said it leaves matters related to said proposed merger to the wisdom of MCMC and is certain that careful assessment and evaluation had been carried out by MCMC before reaching its decisions.
MyCC chief executive officer Iskandar Ismail said MyCC’s current amendment exercise which will lead to the introduction of a merger control regime in Malaysia is on track.
“Again, it must be highlighted that this merger regime will exclude, amongst others, the sector under the purview of MCMC.
“We hope that future decisions by MyCC on merger applications will be the main reference and guide for all other authorities in ensuring a consistent and robust policy landscape that will create certainty in the market,” he said.
Celcom-Digi merger receives MCMC clearance