KUALA LUMPUR (Aug 27): The Malaysian Communications and Multimedia Commission (MCMC) has asked the Asia Internet Coalition (AIC) to provide proof that it is authorised to represent companies when issuing a recent open letter calling the government to halt its plan to require licences for social media platforms.

In its letter seeking clarification from AIC, the industry regulator cited three versions of the open letter, which removed the logo of a number of companies from its original copy, and which subsequently excluded any company logo at the end.

MCMC also referred to a statement by Grab Malaysia, which distanced itself from AIC’s letter by saying it was not consulted and not involved with the process of coming up with the letter.

“Please provide MCMC with written authorisation that authorises AIC to write on behalf of all the aforesaid companies and the basis upon which AIC included Grab Malaysia since the said company has stated they were not consulted.

“Kindly provide MCMC with this authorisation on an immediate basis so that we may understand more fully subsequent developments that as of this letter we find difficult to comprehend,” MCMC said in its letter to the AIC.

In July, MCMC said social media platforms with more than eight million users in the country would be required to apply for a licence from August in efforts to combat cybercrime such as online scams.

The regulator warned that legal action could be taken against platforms that fail to comply by Jan 1, 2025.

The AIC on Friday issued a public letter to Prime Minister Datuk Seri Anwar Ibrahim, urging the government to halt the plan. The letter was signed by AIC managing director Jeff Paine.

However, the original AIC letter, dated Aug 23, was removed from its website late on Monday. The same day, Grab, a member of the coalition, announced that it had not been consulted on the letter's contents.

A new version of the letter, dated Aug 26, was later posted to AIC's website with several sentences removed, including a reference to the government's plan being "unworkable" for the industry. The updated letter also omitted the list of AIC's member companies, which remain available on the group's website.

Nevertheless, MCMC said that it has not yet officially received the updated letter from AIC.

In an eight-page letter to AIC signed by chief network security officer Datuk Mohamed Sulaiman Sultan Suhaibuddeen, MCMC refuted claims that online service providers (OSPs) were not consulted on the OSP licensing framework.

The regulator emphasised that it had held an engagement session with AIC on May 28, attended in person by AIC Secretariat representatives Sarthak Luthra and Edika Amin.

MCMC added that it has also engaged with individual OSPs, including Meta, Twitter, and Google, and that these engagements will continue until the framework is enforced on Jan 1 next year.

"Public consultations are being planned as part of the process to refine and finalise the guidelines, ensuring that all concerns are addressed fairly and transparently," MCMC noted, adding that the regulatory framework is the result of extensive dialogue and careful consideration of inputs from all relevant parties.

MCMC asserted that the five-month grace period before enforcing the new licensing requirements is reasonable and aligns with international best practices, balancing the need to address cyber threats with OSPs' compliance requirements.

"Extending the grace period further would compromise the objective of enhancing user safety and mitigating the rapidly growing risks in the digital space," it added.

MCMC also reiterated that the licensing framework protects OSPs acting in good faith and allows aggrieved parties to seek remedies through the Appeal Tribunal established under the Communications and Multimedia Act 1998 and thereafter in the court of law.

"The prime responsibility of the government is to protect its people against threats, both foreign and domestic, including those in the digital space. MCMC's role includes addressing online threats, harms, and cybersecurity risks to people using network facilities and services. This responsibility transcends any other consideration.

"OSPs have a legal responsibility to protect their users and ensure compliance with Malaysian law when operating in Malaysia's digital space. There is no inconsistency between the licensing regulation and business operations, and both can coexist to benefit the people and the OSPs," MCMC added.

Meanwhile, in a separate statement on Tuesday, MCMC announced it will conduct a public inquiry to gather feedback and ensure the final framework meets industry and public needs.

"These ongoing engagements have been vital in developing a regulatory framework that addresses the needs and concerns of all parties," it said.

MCMC also noted that it has consistently engaged with various stakeholders, including service providers, civil society organisations (CSOs), non-governmental organisations (NGOs), and law enforcement agencies (LEAs), since the Cabinet approved the regulatory framework in March.

The regulator said it has provided platforms with a five-month grace period to comply with licensing requirements, during which MCMC will assist OSPs in transitioning smoothly by Jan 1, 2025.

"Considering this, MCMC urges OSPs to make every effort to ensure their operations align with local laws and regulations," it added.

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