Selangor Journal
A person holds a smartphone with Tik Tok logo displayed in this picture illustration taken on November 7, 2019. — Picture by REUTERS

Ministry examining need to license large social media platform providers

KUALA LUMPUR, Nov 21 — The Communications and Digital Ministry (KKD) through the Malaysian Communications and Multimedia Commission (MCMC) is still examining the need to license or register large platform providers such as Google, Meta, and TikTok, the Dewan Rakyat was told today.

Its Deputy Minister Teo Nie Ching said among the matters being examined were implications from a policy point of view on services, investment, trade as well as consumer safety aspects and taxation methods in Malaysia.

“The government has not yet made a decision or taken a position on this matter, but initial efforts have been made through a series of engagements which seek to get input or feedback from various stakeholders in Malaysia regarding this matter,” she said during the Minister’s Question Time session.

She said this in reply to a question from Datuk Iskandar Dzulkarnain Abdul Khalid (PN-Kuala Kangsar) regarding the ongoing consideration of imposing licences on major platform providers such as Google, Meta and TikTok which generate revenue through content from local media organisations.

Teo said that a committee has also been established to look into issues related to legislation in order to determine the best method to achieve beneficial outcomes for all stakeholders, including the local media industry.

Meanwhile, responding to Dzulkarnain’s supplementary question about the estimated return value that could be generated by licensing these platform providers, Teo said that generating profit was not the main objective.

“I understand the question from Yang Berhormat Kuala Kangsar (Dzulkarnain), how do we ensure that local media organisations can share the advertising expenditure profits that are now obtained by the tech-giant and are not shared by the local media,” she said.

According to Teo, KKD believes that local media organisations can begin talks with large platform providers in order to find a suitable formula for advertising revenue sharing between the two parties, similar to what has been implemented in Taiwan.

The ministry, she said was ready to facilitate the discussions, and should the Malaysian Media Council Bill be approved next year, the issue could be scrutinised by the Media Council to ensure profit sharing for locally produced and created media content.

When asked whether the government would consider following Indonesia’s move to ban online shopping services on the TikTok Shop platform to protect local merchants, Teo said that KKD has not made any decision regarding the matter and that it would be discussed with other ministries.

“I personally met with TikTok to learn how TikTok Shop operates in Malaysia, and the meeting revealed that 96 per cent of TikTok Shop sellers are Malaysians,” she said.

Teo added that the platform benefits not only the TikTok Shop or local e-vendor but also the content creator or affiliate that helps a shop sell its products.

— Bernama

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