Malaysia says social media firms must adhere to rules despite backlash over licensing law – report

Malaysia’s Communications Minister Fahmi Fadzil said that major technology companies must adhere to local rules to continue operating in the country, Reuters reported.

The remarks came after industry group Asia Internet Coalition, or AIC — whose members include Alphabet’s (GOOG) (GOOGL) unit Google, Meta Platforms (META) and X — urged the government on Monday to pause a plan to require social media platforms to apply for a regulatory license.

“We believe this licensing framework will adversely impact innovation by placing undue burdens on businesses. It will hinder ongoing investments and deter future ones due to the complexity and cost of compliance,” said AIC on Monday in an open letter addressed to Malaysia’s Prime Minister Anwar Ibrahim. The AIC also raised the issue of a lack of meaningful and transparent consultation with the industry, among other concerns.

Fadzil said the government was ready for discussions with the AIC and other industry groups on the proposed rules but did not intend to delay the implementation of the rules, which are targeted at combating growing cybercrime, the report added.

Last month, it was reported that the Malaysian Communications and Multimedia Commission had proposed the rules for the social media platforms aimed at fighting scams, cyberbullying and sexual crimes.

Under the rules, all internet messaging and social media service providers with 8 million or more users in Malaysia must apply for a license. If the companies operate without a license from Jan. 1, 2025 they could face legal actions.

“Big tech companies are big but our laws are bigger. If they want to operate in Malaysia, they must respect and comply with our laws,” Fahmi commented.

He noted that earlier discussions with representatives of social media platforms on the plan had been positive, the report added.