THE Malaysia Competition Commission (MyCC) has announced a comprehensive market review to evaluate the effects of the digital economy on the cost of living. This review will explore various facets of the digital landscape, including market structure, enterprise behaviour, and the conduct of suppliers and consumers.
Key areas of focus will include mobile operating systems, with a particular emphasis on integrating Application Programming Interface (API) payment systems for smoother in-app purchases. The review will also address online digital advertising, scrutinising methods such as search engine marketing, social media ads, display advertising, and video promotions.
“Data privacy and protection concerns will be central to the study, particularly issues related to switching costs, data misuse, and control of data by major players in each sub-sector,” it said.
To ensure a thorough and inclusive review, MyCC will conduct a series of focus group discussions. These sessions will cover:
- Online travel agencies (Aug 20)
- E-commerce (Aug 21)
- Online advertising services (Aug 27)
- Mobile operating and payment systems (Aug 29)
Each session will also address data privacy and protection concerns, aiming to gather diverse perspectives from various stakeholders.
Moreover, MyCC’s authority to conduct such reviews is granted under Section 11 of the Competition Act 2010 (Act 712), allowing it to assess whether any market features inhibit, restrict, or distort competition.
Simultaneously, Digital Minister Gobind Singh Deo announced that Malaysia’s digital economy is expected to contribute 25.5% to the country’s GDP by the end of next year, up from the current 23%. – Aug 16, 2024
Main photo credit: Malaysiakini
