KUALA LUMPUR, MALAYSIA February 2026 – The Malaysia Competition Commission (MyCC) today launched the Market Study on the Digital Economy Ecosystem under the Competition Act 2010 (Act 712), in line with the efforts of the Ministry of Domestic Trade and Cost of Living (KPDN) to create a sustainable and progressive domestic trade ecosystem, particularly one that ensures fair and healthy market competition while protecting consumers.
The launch event was held at PARKROYAL Collection Kuala Lumpur and attended by approximately 300 participants, including representatives from ministries and government agencies, industry players, consumer organisations, and academic institutions.
The 18-month study, which began in July 2024, focuses on four key areas:
- Mobile operating systems and payment services
- Retail e-commerce platforms (Retail Marketplace)
- Digital advertising services
- Online travel agencies (OTA)
The study also places special emphasis on privacy and data protection issues across all four areas.
Preliminary findings indicate that certain practices by digital platforms have the potential to undermine fair competition, including high commission structures, restrictive contract terms, limited transparency in pricing mechanisms, and excessive control over user data. These practices are seen as impacting the cost of living for the public and the competitiveness of local businesses, particularly micro, small, and medium enterprises (MSMEs).
MyCC has proposed several concrete actions, including:
- Establishment of a dedicated digital economy market task force under a whole-of-government approach to more effectively address regulatory gaps in the digital economy market.
- Enforcement of the Competition Act 2010 against online travel agencies through close collaboration with the Ministry of Tourism, Arts and Culture and the Malaysian Communications and Multimedia Commission.
- Improvements to digital taxation methods to ensure fair contributions from digital platforms.
Data shows that collections from the Service Tax on Digital Services (SToDS) rose to RM1.62 billion in 2024 from RM802 million in 2021. However, the study estimates a significant potential tax contribution gap due to differences in tax rates between digital platforms and local businesses.
Overall, MyCC has put forward 18 comprehensive policy recommendations covering the strengthening of the regulatory framework, enhanced transparency and data access, and the implementation of strategic initiatives to protect the interests of consumers and MSMEs in the digital ecosystem.
These recommendations are expected to serve as a foundation for all stakeholders in the digital economy—particularly policymakers and implementers—to take immediate action to ensure Malaysia’s digital economy grows in a fair, inclusive manner that delivers direct benefits to the people and the nation.
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