The Malaysia Competition Commission (“MyCC”) has published an Interim Report on the Market Review of the Digital Economy Ecosystem under the Competition Act 2010 on 4 March 2025. This Market Review, conducted under Section 11 of the Competition Act 2010, seeks to assess the competitive landscape, market structure, and regulatory framework governing Malaysia’s digital economy.
 
Recognising the sector’s rapid growth and increasing economic significance, MyCC is reviewing the following four key sub-sectors to identify potential competition concerns and regulatory gaps: 

Additionally, data privacy and protection will be assessed across all sub-sectors, focusing on transparency, compliance, and consumer control over personal data.
 
The Interim Report highlights several key concerns, including regulatory gaps, as existing laws struggle to keep pace with the rapid evolution of digital markets. Lack of transparency is another issue, with digital platforms using opaque algorithms and unclear ranking or pricing mechanisms, making it difficult for consumers and businesses to assess competition. The report also identifies potential anti-competitive practices, such as platform dominance, where a few major players hold significant market power, potentially leading to exclusionary practices, self-preferencing, where platforms favour their own services or products over those of third-party businesses, and restrictions on market entry, where structural or contractual barriers limit competition and innovation.
 
Before finalising its findings and publishing the Final Report, MyCC is conducting a public consultation and invites stakeholders to provide feedback.
 
Stakeholders are invited to submit their feedback and comments to MyCC between 4 March 2025 and 31 March 2025. Submissions may be uploaded via the designated section on MyCC’s website or emailed to ced-digitalmr@mycc.gov.my.
 
The draft Final Report is expected to be completed by Q3 2025, incorporating stakeholder input to develop recommendations for a competitive and sustainable digital economy in Malaysia. Thereafter, MyCC will conduct a public consultation on the draft Final Report to gather stakeholder feedback, particularly on MyCC’s proposed recommendations, before publishing a non-confidential full Final Report and a public summary by end of 2025.
 
Our Partner, Tan Shi Wen and Associate, Lee Li Zhu have been working as the Malaysian Competition Law adviser together with the lead consultant, Roland Berger, on the Market Review of the Digital Economy Ecosystem.
 
Alert by Tan Shi Wen (Partner) and Lee Li Zhu (Associate) of the Competition Law Practice of Skrine.