What competition concerns did MCMC have about the communications market?

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MCMC Identified Competition Concerns Regarding the Celcom-Digi Merger

The Malaysian Communications and Multimedia Commission (MCMC) issued a Statement of Issues to Axiata Group Bhd and Digi.Com Bhd concerning potential reductions in competition within the communications market due to the proposed merger of Celcom and Digi. While the specifics of these concerns were not detailed in the provided information, the commission's review indicated that the merger could lead to a less competitive landscape. Following the applicants' submission of an undertaking to address these issues, MCMC expressed satisfaction that the proposed commitments would substantially mitigate the identified competition concerns.
MCMC's Concerns Leading to a Statement of Issues

The MCMC initiated a comprehensive assessment of the merger application, which was submitted in July 2021. As part of this process, the commission issued a Statement of Issues to the applicants, adhering to its mergers and acquisitions guidelines dated May 17, 2019. This formal step was taken to address the commission's apprehension that the consolidation of Celcom and Digi would result in a significant reduction of competition within Malaysia's communications sector.
Applicants' Undertaking to Address Competition Issues

In response to the competition concerns raised by the MCMC, Axiata and Digi.Com provided an undertaking. This commitment outlined specific measures intended to resolve the issues highlighted by the commission. The submission of this undertaking was a crucial step in the approval process, demonstrating the applicants' willingness to address regulatory scrutiny.
MCMC's Satisfaction with Proposed Commitments

Upon careful consideration of the undertaking provided by Axiata and Digi.Com, the MCMC concluded that the proposed commitments would effectively reduce the competition issues that could arise from the merger. This satisfaction from the MCMC signifies that the applicants' proposed solutions were deemed sufficient to maintain a competitive market environment, paving the way for the merger's progression.

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What competition concerns did MCMC have about the communications market?

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