Digi, Celcom's proposed merger outside of MyCC purview

Amidst repeated calls for the Malaysia Competition Commission (MyCC) to intervene in the proposed merger between Digi Bhd (Digi) and Celcom Axiata Bhd (Celcom), the commission clarified that the matter is outside of its purview.

In a statement today, MyCC said whilst the Competition Act 2010 applies to any commercial activity, within Malaysia, the act clearly stipulates that it does not apply to commercial activities of four sectors, of which the telecommunications and multimedia sector is one of them.

It emphasised that the telecommunications providers’ activities are subject to the scrutiny of the Malaysia Communications and Multimedia Commission (MCMC).

It added that the MCMC regulates mergers within the telecommunications sector and other competition matters through provisions of the Communications and Multimedia Commission Act 1998.

MyCC said it leaves matters related to said proposed merger to the wisdom of the MCMC and is certain that careful assessment and evaluation had been carried out by the MCMC before reaching its decisions.

The chief executive officer of MyCC Iskandar Ismail (above) said its current amendment exercise, which will lead to the introduction of a merger control regime in Malaysia, is on track.

"Again, it must be highlighted that this merger regime will exclude, amongst others, the sector under the purview of the MCMC.

"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.”

Last month, the MCMC has approved the proposed merger between Digi and Celcom.

As Digi and Celcom are respectively Malaysia’s second and third-largest mobile service operators to date, the merger will result in the formation of the country’s largest mobile service operator. - Mkini