Source URL: https://www.theregister.com/2024/08/28/big_tech_wants_to_set_own_rules/
Source: The Register
Title: Big Tech: Malaysia won’t let us set our own rules and that’s not fair and makes us grumpy
Feedly Summary: Asia Internet Coalition asks for rethink of social media licensing law with the old ‘You’ll scare away investors’ line – a week after AWS opened a region
The Asia Internet Coalition (AIC), a lobby group whose members include Google, Meta, Amazon, Twitter (aka X), LinkedIn, Apple, and other Big Tech players, has called on the prime minister of Malaysia to rethink laws requiring social media and instant messaging providers to secure operating licenses.…
AI Summary and Description: Yes
**Summary:** The Asia Internet Coalition (AIC) is urging the Malaysian prime minister to reconsider a proposed licensing law for social media and messaging services, fearing that it could stifle innovation and deter foreign investment. This situation highlights the tension between regulatory compliance and the operational flexibility of tech companies, particularly regarding online content moderation and security.
**Detailed Description:**
The text discusses a significant regulatory challenge faced by tech companies in Malaysia, led by a collective response from the Asia Internet Coalition (AIC). The proposed licensing framework is significant for several reasons:
– The AIC represents major tech companies including Google, Meta, AWS, and others, which underscores the importance of the issue to the broader tech ecosystem.
– The letter to Prime Minister Anwar Ibrahim expresses concerns over how the licensing requirements could create undue burdens on businesses and hinder innovation.
– The forthcoming regulations will require social media providers with over eight million users in Malaysia to obtain an Applications Service Provider Class License, which could complicate compliance and dissuade foreign investments.
Key points include:
– **Compliance Burden:** The AIC claims the new licensing requirements will not only complicate existing operations but will also escalate costs, potentially leading to reduced innovation and a slowdown in investment.
– **Foreign Investment Deterrent:** The requirement for a locally incorporated entity for licensing may further dissuade international companies from entering the Malaysian market.
– **Lack of Consultation:** The AIC highlights that the licensing proposal was released without formal public consultation, suggesting a lack of engagement with industry stakeholders.
– **Online Harm Mitigation:** The Malaysian Communications and Multimedia Commission (MCMC) asserts that the licensing framework aims to reduce online harms, which raises questions about how such regulations will be enforced and what implications they have for genuine content moderation.
– **Self-Regulation:** The coalition suggests a self-regulation model as an alternative, citing past adaptability by platforms during crises like the COVID-19 pandemic.
– **Global Trends:** The text situates Malaysia’s proposed regulations within a larger global context where other jurisdictions, such as the EU with its Digital Services Act, are implementing similar legal obligations for content moderation and disinformation management.
Overall, the text emphasizes the delicate balance between regulatory compliance, innovation, and security in the tech industry, particularly in the realm of social media and content moderation. This scenario is critical for security, compliance, and governance professionals who operate in environments with sudden changes to the regulatory landscape, particularly in the rapidly evolving digital space.