MyCC Managing Director Iskandar Ismail said that business related to telecommunications services falls under the jurisdiction of the Communications and Multimedia Commission (MCMC). — Photo by Devan Manuel
Saturday 02 Jul 2022 15:33 MYT
KUALA LUMPUR, July 2 ― The Malaysian Competition Commission (MyCC) does not have the power to intervene in the proposed merger between Digi Bhd (Digi) and Celcom Axiata Bhd (Celcom), said its chief executive Iskandar Ismail .
He said that activities related to telecommunications services fall under the jurisdiction of the Communications and Multimedia Commission (MCMC).
“While the Competition Act 2010 applies to all commercial activity in Malaysia, the same law states that it does not apply to commercial activities in four sectors, including the telecommunications and multimedia sectors.
“MCMC regulates telecommunications mergers and related competition matters through the provisions of the Communications and Multimedia Commission Act 1998,” it said in a statement today.
As such, he said, MyCC would leave the matter of the proposed merger to the discretion of the MCMC, adding that he believed the commission conducted a thorough assessment and review before approving the merger.
He added that MyCC’s decision to amend the Competition Act 2010, which would introduce a merger control regime in Malaysia, is going well, but he pointed out that the merger regime would exclude sectors under the jurisdiction of MCMC, among others.
“We hope that MyCC’s decision on future merger applications will be a key reference and guide for all other authorities to ensure a consistent and robust policy landscape that will create market certainty,” he said. declared.
On Wednesday, MCMC said in a statement that it approved the proposed merger between Digi and Celcom.
As Digi and Celcom are Malaysia’s second and third largest mobile operators respectively, to date, the merger will result in the formation of the country’s largest mobile operator, the MCMC said in the statement.
To recap, on April 8, 2021, Axiata and Telenor Group announced that they were discussing the proposed merger between Celcom and Digi to form a new entity known as MergeCo and that it is expected to be completed in the second half of 2022. ― Bernama