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PETALING JAYA: The proposed merger between Digi Bhd (Digi) and Celcom Axiata Bhd (Celcom) does not lie within the purview of the Malaysia Competition Commission (MyCC).
In a statement on Saturday (July 2), MyCC chief executive officer Iskandar Ismail said they were aware of repeated calls for them to intervene but added that the activities of telecommunication providers are subject to the scrutiny of the Malaysia Communications and Multimedia Commission (MCMC), through provisions of the Communications and Multimedia Commission Act 1998.
Also read: MCMC approves Celcom-Digi merger
Iskandar said that while the Competition Act 2010 applies to any commercial activity within Malaysia, the Act clearly states that it does not apply to commercial activities in four sectors.
He added that this includes the telecommunications and multimedia sector, among others.
“In this regard, MyCC leaves matters related to the said proposed merger to the wisdom of the MCMC and is certain that a careful assessment and evaluation process has been carried out by them prior to reaching a decision,” he said.
He added that MyCC’s current amendment exercise aimed at introducing a merger control regime in Malaysia was also on track but highlighted that several sectors were excluded from its purview such as those under the MCMC.
“At the same time, 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.