11:49 AM EDT, 10/30/2024 (MT Newswires) -- Meta Platforms ( META ) criticized Malaysia's plan to mandate that social media platforms obtain a regulatory license by January, arguing that the plan was vague, Reuters reported Wednesday, citing the company's director Rafael Frankel.

The proposal gives social media platforms little time to comply while risking digital innovation and growth in Malaysia, the company's director of public policy for Southeast Asia reportedly said.

Malaysia aims to curb online scams and harassment with new social media regulations that require social media platforms with over 8 million users to get a license, according to the report.

Failure to get a license before Jan. 1 can lead to legal action, however, Meta is uncertain if it intends to apply because of lack of clarity about the new regulations, Frankel told Reuters in an interview.

Frankel said Meta aligns with the Malaysian government's objective of creating a safe online environment and is collaborating closely with the communications regulator to eliminate or restrict harmful content on its platforms.

The company's director emphasized that a licensing regime is unnecessary for Meta to prioritize online safety, as the company already takes this issue seriously, according to the news outlet.

Meta did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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