Public Consultation on Amendments to Harmonise Market Competition Issues Across Telecommunication and Media Sectors

Introduction

The Ministry of Digital Development and Information (“MDDI“) and the Infocomm Media Development Authority (“IMDA“) have issued a public consultation on the draft Info-communications Media Development Authority (Amendment) Bill (“Bill“), which proposes amendments to the Info-communications Media Development Authority Act 2016 (“IMDA Act“).

The Bill seeks to harmonise and refine the treatment of market competition issues across the telecommunication and media sectors by implementing (i) changes to the media competition framework which were previously consulted on; and (ii) further refinements for better clarity of the provisions.

The key proposed amendments include provisions on:

1. The threshold for acquisition transactions requiring IMDA approval;
2. The extent to which anti-competitive agreements will be rendered void;
3. The power to order structural separation;
4. The process for appeal against IMDA’s decisions and directions;
5. IMDA’s powers to issues directions and obtain information, particularly regarding Regulated Persons (“RPs“) and owners or controllers of essential resources; and
6. IMDA’s authority to approve codes of practice or standards of performance.

This Update provides an overview of the key amendments proposed in the Bill, and their effect on the IMDA Act and the competition framework in the telecommunications and media sectors.

Background

IMDA was established in 2016 pursuant to the IMDA Act. It marked the convergence of the telecommunication and media sectors under a single regulator, with IMDA having oversight of both telecommunications licensees and RPs (i.e. newspaper companies or broadcasting licensees).

The Code of Practice for Competition in the Provision of Telecommunication and Media Services 2022 (“TMCC“) was then issued to replace the separate codes of practice across the two sectors, serving to promote effective and sustainable competition as well as safeguard consumer interests.

Prior to issuing the TMCC, IMDA conducted public consultations in 2019 and 2021 on the proposed policy positions for the TMCC. IMDA issued a closing note on the consultations (“TMCC Closing Note“), in which it noted that several policy positions would require amendments to the IMDA Act before they could be implemented.

The proposed amendments in the draft Bill now seek to implement the changes to the IMDA Act in accordance with the decisions on feedback set out in the TMCC Closing Note. To further refine the media competition framework, the Bill also proposes amendments on IMDA’s powers and authority in this area.

Amendments Based on TMCC Closing Note

The draft Bill sets out a series of proposed amendments to the IMDA Act in accordance with IMDA’s decisions in the TMCC Closing Note. The amendments largely address the approach to market competition issues in the media sector, bringing them in line with the approach in the telecommunications sector, as set out in the Telecommunications Act 1999 (“TA“).

The key amendments include the following:

1. Threshold for IMDA Approval

Currently, only transactions by RPs or ancillary media service providers that result in the acquisition of 30% or more of voting shares/power in a RP are subject to IMDA’s prior approval.

The Bill provides that all transactions that result in any person acquiring 30% or more of the voting shares/power in a RP shall be subject to IMDA’s prior approval. The proposed amendment addresses the concern that transactions where voting shares or power in an RP are acquired by persons who are not RPs or ancillary media service providers may also potentially raise competition concerns.

2. Transactions Requiring IMDA Notification

Currently, transactions involving RPs which meet specific thresholds in change of voting power require IMDA’s prior written approval, regardless of whether they are pro forma (i.e. transactions that do not result in changes to the proportionate voting power held by shareholders).

The Bill provides that, for pro forma transactions involving RPs, IMDA’s prior approval is no longer required; instead, there shall be a requirement to notify IMDA of such transactions. This brings the notification requirement in line with equivalent transactions involving designated telecommunications licensees, providing a consistent procedure across both industries to ease the regulatory burden of seeking approval for transactions involving companies within the same group that do not give rise to competition concerns.

3. Anti-competitive Agreements

Currently, under the IMDA Act, if an agreement is deemed to be anti-competitive, the entire agreement will be void.

The Bill provides that such anti-competitive agreements shall be void only to the extent that they are anti-competitive. This brings the approach to anti-competitive clauses in line with the existing approach in the TA, which IMDA regards as the more reasonable and practical approach, consistent with general competition law.

4. Structural Separation

Currently, under the IMDA Act, the power to order structural separation to a RP is vested with IMDA.

To be consistent with the approach taken for the telecommunication sector, the Bill removes IMDA’s powers to impose structural separation on an RP, and vests the powers with the Minister instead. IMDA has stated that the Minister will order structural separation of a RP only when considered necessary in the public interest, or where existing and potential regulatory measures may be insufficient to enhance competition in the industry.

5. Appeal Process

Currently, under the IMDA Act, any person aggrieved by IMDA’s final decisions and directions may appeal only to the Minister.

The Bill introduces a reconsideration process for media-related decisions on competition and consumer protection matters, in which aggrieved persons may request IMDA to reconsider the matter, or appeal directly to the Minister. This brings the appeal options in line with that in the TA.

Further Amendments

MDDI and IMDA have also proposed other amendments to the IMDA Act to further refine the media competition framework, taking reference from existing positions in the telecommunications sector under the TA. This includes the following amendments:

1. Power to Issue Directions

The Bill proposes to empower IMDA to issue directions to a RP or acquirer if there is a contravention of the amended consolidation provisions (acquisition transactions requiring IMDA approval).

The Bill also proposes to empower IMDA to issue directions to RPs and owners or controllers of essential resources for the purposes of (i) maintaining fair and efficient market conduct and effective competition in the media industry; or (ii) safeguarding interests of consumers by promoting fair, transparent and reliable provision of media services. This is to enable IMDA to act swiftly to prevent anti-competitive behaviour and protect consumer interests.

2. Designation by Notice

The Bill provides for the manner of designating (i) an RP who is in a dominant position in a market connected to the provision of media services; and (ii) a person who is an owner or controller of essential resources. Designation shall be by way of notice given by IMDA to the affected person in any manner that secures adequate notification. This is in place of the current mode of notification, which is by way of publication in the Gazette.

3. Power to Obtain Information

The Bill proposes to empower IMDA to obtain information (i) to ascertain a person’s equity interest or voting power in a regulated person; and (ii) for carrying out IMDA’s functions and duties in relation to the designation of a media resource as an essential resource.

4. Codes and Standards

IMDA is currently empowered to issue codes of practice, standards of performance and advisory guidelines. The Bill provides that IMDA may also approve any document not prepared by IMDA as a code of practice or standard of performance, if the document is considered to be suitable.

Concluding Words

The draft Bill proposes a number of key changes in the area of market competition in the media sector, largely seeking to bring the position in line with that of the telecommunications sector. The amendments will affect the approval/notification obligations for mergers and acquisitions in the media sector, the powers of IMDA to issue directions against anti-competitive behaviour, and the procedures involved in IMDA competition decisions.

Industry stakeholders should assess the proposed amendments, their commercial effect, and whether any clarifications are needed. For example, the draft Bill proposes that the designation of an RP as a dominant RP would be effected by notice to the affected person, rather than by publication in the Gazette, which represents a shift in transparency of such designations. If implemented, these designations may no longer be publicly accessible, making it more difficult for customers and other industry participants to assess whether a dominant RP is subject to and complying with the dominant entity obligations under section 4 of the TMCC.

The public consultation on the draft Bill closes on 21 January 2026. Parties looking to respond to the consultation may feel free to contact our Team for assistance.