Amendments to IMDA Act

1. Proposed amendments to the Info-communications Media Development Authority Act (“IMDA Act”) were tabled in Parliament today. The proposed amendments are a targeted set of updates to help strengthen the competition and consumer protection regulatory framework for the media sector and align it with that for the telecommunication sector. The amendments will enhance regulatory oversight by the Infocomm Media Development Authority (IMDA) to ensure fair competition in the media sector, safeguard consumers’ interests and offer greater regulatory clarity to industry stakeholders.

2. The key amendments include:

• Broadening the oversight of ownership and control changes in the media sector

Currently, only acquisitions, mergers or consolidations between regulated persons¹ (RPs) or between RPs and ancillary media service require IMDA's prior approval. The amendment expands this so that transactions by any person that results in the person acquiring 30% or more equity interests or voting power in an RP, effective control over its operations, or the person taking over the RP’s media business as a going concern will require IMDA's prior approval. This allows for clearer oversight of market developments, especially in relation of ownership changes for regulated persons, and aligns with the existing practice for the telecommunication sector.

• Powers for more timely intervention to ensure fair and efficient market conduct

Currently, IMDA can only provide directions to RPs if there is non-compliance with competition or consumer protection obligations under the IMDA Act and the Telecom and Media Competition Code (TMCC). There may be instances where actions from RPs result in outcomes that are undesirable to consumers or undermine fair market conditions, despite there being no breach of the IMDA Act or the TMCC. With the amendment, IMDA can take swifter and targeted action by issuing a direction to prevent unfair market conduct in the media sector and better protect consumers.

• Streamlined treatment of immaterial transactions²

Under the current Act, immaterial transactions involving RPs would still require IMDA's prior written approval. The amendment replaces this requirement with a simpler obligation to inform IMDA of such transactions. This change will lighten the regulatory burden for the industry while maintaining oversight of such transactions in the media sector.

• Related amendments to the Telecommunications Act (TA)

Amendments will also be made to the TA for alignment purposes. Terminology and cross-references will be updated to be consistent with changes to the IMDA Act.