Ismail said telecommunications providers’ activities are subject to the scrutiny of the Malaysian Communications and Multimedia Commission (MCMC), not MyCC.

“While the Competition Act 2010 applies to any commercial activity within Malaysia, the Act does not apply to commercial activities of four sectors, including the telecommunications and multimedia sector,” he said in a statement.

He said instead, mergers within the telecommunications sector and other competition matters fall within the ambit of the Communications and Multimedia Commission Act 1998.

He added that MyCC’s current amendment exercise to introduce a merger control regime is still on track, but will exclude sectors under the purview of the MCMC.

His statement came after repeated calls for MyCC to step in to prevent the proposed merger between the two telcos.

Yesterday, the Federation of Malaysian Consumers Associations (Fomca) urged the MyCC to intervene to stop the merger between Digi and Celcom, saying that it would reduce choices in the market, resulting in higher prices for consumers.

Consumers’ Association of Penang (CAP) president Mohideen Abdul Kader also warned that a merger of the second and third largest mobile service operators in the country would result in a sort of monopoly, adding that it should not be approved except under conditions set by the government.

On Wednesday, MCMC said it had no objections to the proposed merger, which could result in the formation of the largest mobile service operator in Malaysia.

MCMC said that it had conducted a comprehensive assessment of the proposal and that Digi and Celcom had expressed their commitment to overcoming issues surrounding competition.