Based on the Malaysian Communications and Multimedia Commission (MCMC)’s new licensing framework, social media platforms with over 8 million users are now mandated to apply for a license by January 1, 2025, or face legal consequences. This initiative aims to help combat cyberbullying and harmful content online. This regulation marks a shift in the Government of Malaysia’s oversight of online platforms, with a broad definition of "social media services" and "internet messaging services" impacting many companies enabling content sharing or communication.
Several Chinese-owned social media and telecommunication entities have already obtained licenses, while notable U.S. platforms are still in the process of complying with the new licensing requirement. Discussions are ongoing with remaining U.S. companies where there are questions surrounding the applicability of the regulation to certain platforms. Licenses must be renewed annually and applied for through a locally incorporated company.
Smaller platforms with fewer than 8 million users are currently exempt but may face similar requirements as they grow. Key compliance measures for licensed platforms include adhering to Malaysia’s Communications and Multimedia Act (CMA), assisting in crime prevention, and possibly contributing to the Universal Service Provision Fund. With no clear precedent, how the regulation applies to platforms regarding video streaming and professional networking remains uncertain and will depend on upcoming discussions with the MCMC.
