In a significant development for the tech world, Elon Musk’s X (formerly Twitter) and Google’s YouTube have failed to meet Malaysia’s January 1, 2025 deadline for obtaining licenses to operate under the country’s new social media regulations. The move comes as Malaysia intensifies efforts to control online content, curb cybercrimes, and ensure that major social media platforms take greater responsibility for the material users share on their services.
The Malaysian Communications and Multimedia Commission (MCMC) reported on Wednesday that X and Google had not submitted their applications to comply with the newly enforced law. This oversight places these platforms at risk of facing regulatory action, despite their prominence in the digital sphere.
This article explores the implications of Malaysia’s licensing law, what is at stake for major social media platforms like X and YouTube, and why the Malaysian government is pushing these regulatory measures. We’ll also examine how other tech giants are responding to the law and what this could mean for the future of social media content moderation globally.
Malaysia’s New Social Media Licensing Law: A Step Toward Greater Content Control
The new law, which went into effect on January 1, 2025, mandates that all social media platforms with over 8 million users operating in Malaysia must obtain a social media operating license. The goal of the legislation is to hold platforms accountable for the content shared by their users and ensure they have systems in place to combat cybercrimes, including scams, cyberbullying, and the spread of illegal content such as child exploitation materials.
For platforms like X and YouTube, this represents a significant shift in how they operate, especially in terms of compliance with local laws. The MCMC believes the licensing requirement is crucial for ensuring that platforms take stronger action in removing harmful content and keeping online spaces safer for Malaysians.
However, the law’s introduction has not come without controversy. Some companies, including Google and X, have raised concerns about the law’s scope and how it might affect their operations in Malaysia, as well as the broader digital ecosystem in the region.
Why X and Google Are Under the Spotlight
Both X and Google were due to submit their applications for licensing by the January 1 deadline, but failed to do so, according to reports from the MCMC. X, led by Elon Musk since its acquisition in late 2022, argued that it has a user base in Malaysia that does not exceed the 8 million threshold required by the law. In fact, X reported a user base of 5.71 million users in Malaysia as of early 2024.
The MCMC, however, has made it clear that it will review and verify these claims. If X’s user base continues to grow, the platform may still be required to comply with the licensing law in the near future. In addition to this issue, X faces the challenge of aligning its global content moderation practices with the regulatory demands of a specific market like Malaysia, where online content is often scrutinized for sensitive political or cultural reasons.
For Google, the situation is somewhat different. While the company is more well-known for its search engine, YouTube remains one of its largest and most important platforms. Google has expressed concerns about the law’s application to video-sharing platforms, particularly whether YouTube’s core function of distributing videos makes it fall under the same category as social media. YouTube has millions of users in Malaysia, and its video-sharing services are central to the platform’s global appeal. However, Google is currently in discussions with the MCMC to better understand the requirements and how they might affect YouTube’s operations.
The MCMC’s Stand on Content Moderation and Cybercrime
The MCMC’s drive for these licensing regulations stems from concerns over the growing threats of cybercrimes and harmful online content. In recent years, Malaysia has seen an alarming rise in online scams, cyberbullying, and the circulation of illicit content, especially on popular social media platforms. As part of the country’s digital transformation agenda, the government is committed to ensuring that digital platforms take responsibility for the material users upload, share, and consume.
The law is designed not only to mitigate harm but also to hold tech companies accountable for enabling such content to flourish unchecked. In particular, the MCMC has cited a lackadaisical attitude by social media platforms toward tackling harmful content as a key issue. The failure of companies to remove illegal material or address harmful behavior on their platforms could lead to even greater scrutiny and regulatory action from governments around the world.
What Happens Next: Penalties for Non-Compliance
While the MCMC has set out the new rules and deadlines for obtaining social media licenses, it has yet to specify exactly what penalties non-compliant platforms could face. This creates a degree of uncertainty for platforms like X and YouTube, which are currently evaluating their positions on the issue.
It is expected that Malaysia will impose fines, temporary bans, or other restrictions on platforms that do not meet the licensing requirements. If companies fail to comply, it could result in a significant loss of access to Malaysian users, which could have financial repercussions given the country’s growing digital market.
The law also represents a broader trend of increasing tech regulation around the world, especially in Asia-Pacific. Similar initiatives have been discussed or implemented in India, Australia, and China, as governments look for ways to address concerns over digital content, misinformation, and online security.
Global Responses to Malaysia’s Licensing Law
The Malaysian regulatory push is part of a larger global trend where governments are taking a more aggressive stance on regulating social media platforms. While China has long been known for its strict internet censorship policies, other Asian countries like India and Australia are also working on similar legislation. These countries are seeking to hold digital giants accountable for content that crosses the line into criminal or harmful behavior.
Meanwhile, WeChat (owned by Tencent) and TikTok (owned by ByteDance) have already secured their licenses ahead of Malaysia’s deadline. This has raised eyebrows in the West, especially as Chinese platforms often have different standards for content moderation compared to their American counterparts. Despite criticisms of censorship in China, platforms like WeChat and TikTok have shown an ability to adapt quickly to local regulatory requirements.
Another significant player, Meta (the parent company of Facebook, Instagram, and WhatsApp), has initiated the process of obtaining a license as well. However, Meta has come under fire for its slow response in addressing criminal content such as scams and illegal gambling, which has been rampant on its platforms. Communications Minister Fahmi Fadzil has openly criticized Meta for not acting swiftly enough, even as online fraud continues to affect Malaysian users. Meta’s response, while in progress, has raised concerns about its commitment to compliance, especially in a country that is looking to ensure stricter oversight of tech companies.
What This Means for the Future of Social Media Regulation
The outcome of Malaysia’s efforts to regulate social media platforms will be closely watched around the world. As governments everywhere grapple with the challenge of regulating the vast, interconnected digital space, Malaysia’s approach may serve as a model—or a cautionary tale—for other nations considering similar actions.
For companies like X, YouTube, and others, the challenge lies in balancing compliance with innovation. Striking the right balance between providing users with freedom of expression while also ensuring that platforms are safe, secure, and responsible is a tough task.
As digital platforms grow and evolve, it’s clear that regulation is likely to increase, with a focus on holding tech companies accountable for their role in shaping the digital world. Whether this leads to more censorship or more transparency remains to be seen, but one thing is clear: the future of social media will be defined by its ability to adapt to the demands of global regulators.