MyCC issues interim report on market review of digital economy ecosystem under Competition Act 2010

7 March 2025

On 4 March 2025, the Malaysia Competition Commission (“MyCC”) published an interim report on its Market Review on the Digital Economy Ecosystem in Malaysia. The interim report provides an overview of the digital economy in Malaysia and its impact on competition in the relevant market, with a specific focus on the following sub-sectors:

  • Mobile operating systems (i.e. software platforms) and integrated payment systems;
  • E-commerce, particularly business-to-consumer marketplace platforms;
  • Digital advertising services; and
  • Online travel agencies.

Background

In July 2024, the MyCC initiated a market review under the Competition Act 2010 to examine Malaysia’s digital economy and its impact on costs of living, especially in light of the sector’s accelerating growth driven by, among other things, the emergence of artificial intelligence, machine learning, and shared economy platforms, all of which could affect competition (“Study”).

The issues addressed in the market review include:

  • the risk of anti-competitive conduct within the digital economy;
  • the market structure, supply chain, and profile of industry players across the digital economy;
  • regulations and policies which impact on competition and the need for government intervention; and
  • recommendations for government agencies and regulators in the digital space to mitigate competition law concerns.

Data privacy and protection concerns

A key consideration highlighted by the MyCC in the interim report is the critical role of data in the digital economy, where access to relevant data is a key factor in determining the competitive advantage of players in their respective sectors. The MyCC considered selected decisions involving global players in the digital realm and relating to anti-competitive conduct such as vertical restraints, illegal tying, self-preferencing, and unfair trading conditions in the global digital economy.

Feedback to the MyCC

The MyCC is currently seeking feedback on the interim report. Market participants such as consumers, regulators, mobile and payment system operators, e-commerce platforms, digital advertising services, and online travel agencies, and so on may provide feedback from 4 March 2025 to 31 March 2025 via digitalmr@mycc.gov.my or uploading their feedback on the interim report on the MyCC’s website. The feedback may be in relation to applicable laws and regulations, identified regulatory issues, market practices, competition assessment, and market shares of key players in the digital economy.

The MyCC expects a public consultation to be conducted and the Study completed by December 2025.

Takeaway for businesses

The MyCC market review on the digital economy ecosystem in Malaysia signifies their cognisance of anti-competitive risks in the evolving digital economy. The interim report highlights potential regulatory changes in terms of enforcement trends, priorities and practices, identifies anti-competitive practices to players within the digital economy, and provides valuable insights into market dynamics from a competition perspective. Such insights will help businesses take preparatory steps to adapt to the evolving regulatory landscape and ensure continued compliance with applicable laws.

The background and overview of the Study is available here and the interim report here.

Further information

This article has been prepared with the assistance of Associates Siah An Gel and Mohamad Syafiq bin Mohamad Tazri.

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