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We have the tools to prevent monopolies, says MCMC

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However, a consumer group doubts that MCMC will protect consumers after the proposed Celcom-Digi merger.

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PETALING JAYA:
The Malaysian Communications and Multimedia Commission (MCMC) has given its assurance that it has tools in place to prevent monopolies.

It said this in responding to FMT over concerns from the public that the planned merger between telecommunications giants Celcom and Digi could lead to a monopoly and fewer options for consumers.

In a statement, MCMC said as a regulator, it will not comment on the merger until there is better clarity over the deal.

“Moreover, the regulatory framework in place has the right tools to prevent monopolies as well as ensuring that consumers are protected,” it said.

A proposed merger of Celcom Axiata Bhd and Digi.com Bhd has been reported, with the merged company to be known as Celcom Digi Bhd, but both consumer brands will continue to exist after the merger.

Celcom Digi Bhd is expected to become one of the largest technology companies in the country, with an estimated market share of over 60%.

The Malaysia Consumers Movement said the MCMC must scrutinise the deal as it would reduce competition in the market which goes against consumer interests.

The consumer group’s secretary-general Sukhdave Singh said he doubted MCMC will protect consumers interests.

“Our competition act must be reviewed and strengthened. Currently it does not cover mergers and acquisitions.

“By right all mergers and acquisitions must fall under the purview of the Malaysia Competition Commission (MyCC) and not under market regulating commissions.”

Though commercial activities are regulated under the Competition Act 2010, some regulated under different legislations are excluded. This involves those in the telecommunications, energy, petroleum and aviation industries.

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