Can telcos be held liable for facilitating criminal online activities?

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Telcos Can Be Held Liable for Facilitating Criminal Online Activities

Internet service providers (ISPs) in Malaysia can be held liable for facilitating criminal online activities if they knowingly allow their services to be used for illegal purposes after being informed. The Malaysian Communications and Multimedia Commission (MCMC) has reminded ISPs of their obligations under Section 263 of the Communications and Multimedia Act 1998 (CMA 1998) to prevent such abuses.
Obligation to Prevent Offences

Under Section 263 of the CMA 1998, all ISPs are mandated to use their best endeavours to ensure their services are not exploited to commit any offence. This includes actively working to prevent criminal conduct from occurring on their platforms and promptly removing any instances of online harm. The regulator's statement emphasises that telcos are required to comply with any MCMC requests or instructions aimed at preventing the commission or attempted commission of offences under Malaysian law.
Potential Charges for ISPs

The MCMC has indicated that ISPs, along with their directors, chief officers, or individuals with effective control of the company, may face legal charges. These charges can be brought if it is established that they knowingly facilitated criminal activities after receiving notification that such crimes were being committed. This provision is specifically designed to deter the misuse of internet platforms for illegal purposes, such as scams, phishing, and the dissemination of content inciting racial or religious discontent.
MCMC's Enforcement Stance

The MCMC's reminder highlights a proactive stance in addressing online harms, including fake news, scams, and gambling. The commission expects telcos to develop action plans to tackle content-related issues and enhance their capabilities to combat these online threats. This move follows a period of increasing public concern over the abuse of network services, with a notable rise in financial losses due to online scams, such as those reported on platforms like Facebook, Instagram, and WhatsApp, which saw Malaysians lose approximately RM330 million between January and May 2023.

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Can telcos be held liable for facilitating criminal online activities?

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