JANUARY 3 — On December 18, Communications Minister Fahmi Fadzil called for an investigation into TikTok users regarding missing funds from e-commerce accounts. Subsequently, eight major social media and messaging platforms — WhatsApp, Facebook, Instagram, X, YouTube, Telegram, WeChat, and TikTok — were identified as platforms subject to social media licensing. The recent amendments to the Communications and Multimedia (Licensing) (Amendment) (No. 2) Regulations 2024 and Communications and Multimedia (Licensing) (Exemption) (Amendment) Order 2024 require internet messaging services and social media service providers with eight million or more users in Malaysia to apply for the class licence (ASP(C) Licence) under the Communications and Multimedia Act 1998 (CMA 1998).
The issue at hand lies in the understanding of e-commerce and its ecosystem. The ecosystem represents the interaction between various participants’ entities and the digital environment as a unified system. With the current advancement of technologies and the boom in the digital economy, apps and super apps have become an integral part of our daily activities. These tools facilitate communication, the procurement of goods and services, information access, leisure activities such as online gaming, video streaming, software subscriptions, and more.
Hence, the concept of the information service society has emerged in many European Union legal texts, including the Directive on Electronic Commerce (Directive 2000/31/EC), Directive (EU) 2015/1535 on Technical Regulations and Rules on Information Society Services, the General Data Protection Regulation (Regulation (EU) 2016/679), and the Digital Markets and Services Act package of 2022.
Information society services refer to a broad range of economic activities conducted online. These services are not restricted solely to those that involve online contracting but also extend to services that are not remunerated by the recipients. These include services that offer online information or commercial communications, or those providing tools for searching, accessing, and retrieving data.
Furthermore, information society services encompass services that involve the transmission of information via a communication network, the provision of access to such networks, or hosting information provided by a recipient of the service.
However, drawing a clear line between the nature of platforms — whether they are social media services or e-commerce platforms — can be challenging. In many cases, platforms serve both functions. For instance, WhatsApp is primarily a communication platform, but it also enables e-commerce transactions and allows sellers to communicate with consumers regarding goods and services. Similarly, e-commerce platforms like Lazada and Shopee use WhatsApp to recruit sellers and communicate with consumers.
In the platform economy, services often begin with a free offering, as seen with TikTok and Facebook. Once these platforms achieve the relevant economic scale and data-driven indirect network effects, they expand into other industries. TikTok and Facebook, for example, have moved beyond social media to include e-commerce and advertising. Similarly, Shopee and Lazada, which initially focused on e-commerce, have now expanded into food delivery, logistics, warehouse services, payment gateways, advertising, short videos, and even education through platforms like Lazada and Shopee University, which provide training for sellers.
These platforms also function as communication networks, facilitating interactions between various participants within their ecosystems. In essence, they are intermediary services, and it is essential to protect both business users and consumers under the law. The responsible and professional diligence of providers of intermediary services is crucial to ensuring a safe, predictable, and trustworthy online environment for all Malaysians.
Therefore, the narrow scope of e-commerce as defined under Malaysia’s Electronic Act 2006 should be re-examined. It is crucial to broaden this scope and consider the broader context of the information service society. In-depth coordination between various ministries — particularly the Ministry of Communications, Ministry of Digital, and Ministry of Domestic Trade and Cost of Living — will be essential in providing the necessary protection for Malaysians in the digital environment, despite jurisdictional and ministerial differences.
*The author is a senior lecturer at the Faculty of Law, Universiti Malaya.
**This is the personal opinion of the writer and does not necessarily represent the views of Malay Mail.
