Meta criticizes Malaysia’s social media licensing plan, says risks innovation, lacks clarity – report

An official of Meta Platforms (NASDAQ:META) criticized a plan by the Malaysian government which requires social media platforms to apply for a license by January, Reuters reported.

The official noted that the proposed rule did not have clear guidelines and gave companies less time to adhere, risking digital innovation and growth in the Asian nation, the report added.

In July, the Malaysian Communications and Multimedia Commission said it would require social media platforms to apply for a license if they have over 8M users in the country. The rules are aimed at fighting scams, cyberbullying and sexual crimes and if the companies do not obtain a license by Jan. 1, 2025 then legal action could be taken against them.

The move faced backlash, as industry group Asia Internet Coalition, or AIC — whose members include Alphabet’s (GOOG) (GOOGL) unit Google, Meta and X — urged the government in August to pause the plan. However, Malaysia’s Communications Minister Fahmi Fadzil reiterated the same, noting that that major technology companies must adhere to local rules to continue operating in the country.

Rafael Frankel, Meta’s director of public policy for Southeast Asia, said the social media company has not yet decided if it intends to apply for the license ahead of the January deadline, because of lack of clarity over the new rules.

The timeline to apply for a license was “exceptionally accelerated” and the requirements for social media companies under the plan were not clear, Frankel said in an interview with the news agency.

Frankel noted that such regulations tend to take a couple of years and go through multiple iterations to properly structure them, to balance the need for safety and make sure that inadvertently innovation and digital economic growth are not capped.

Fahmi thanked Meta for its intention to cooperate with the government but requested it to take more proactive measures against sexual content involving minors on its platforms, the minister said in a Facebook post on Wednesday after a meeting with Meta representatives a day ago, the report noted.

Frankel noted that Meta shared the Malaysian government’s objective of a safe online environment and was working with the communications regulator to remove or curb harmful content on its platforms, the report added.

In addition, Frankel said that Meta shared its concerns with the government and hopes to “bridge the differences” over the proposed rules before they come into effect.

Earlier this year, Malaysia reported an increase in harmful social media content and asked social media companies, including Meta and TikTok, owned by ByteDance (BDNCE), to boost monitoring on their platforms.