Here's why the MyCC can't act on DNB and Celcom-Digi merger - SoyaCincau

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Some groups have called upon the Malaysia Competition Commission (MyCC) to act on the Celcom-Digi merger as well as DNB. Unfortunately, telcos are not under their purview and here's why.

, the Act shall not apply to the Communications and Multimedia Act 1998, Energy Commission Act 2001, Petroleum Development Act 1974 and Malaysian Aviation Commission Act 2015. This means telcos, energy, petroleum, and airlines are out of their jurisdiction.It added that telecommunication activities are subject to the scrutiny of the Malaysian Communications and Multimedia Commission .

On the Celcom-Digi development, MyCC says it leaves the matters related to the said proposed merger to the wisdom of the MCMC and is certain that careful assessment and evaluation had been carried out by MCMC before reaching its decision. MyCC CEO Iskandar Ismail said their current amendment exercise which will lead to the introduction of a merger control regime in Malaysia is on track. However, it will still exclude sectors under the purview of the MCMC but it hopes that the 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.

Last week, the MCMC has announced the approval of the Celcom-Digi merger after the two telcos have agreed to several undertakings to address competition concerns. This includes returning 70MHz of total spectrum to the MCMC, forming an independent business to handle MVNO operations, divesting Yoodo and removing exclusive distributors in several states. The Celcom-Digi merger will form Malaysia’s largest telco, which is bigger than Maxis.

 

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