The timing couldn't have been more scripted. Just as the Online Safety Act (ONSA) 2025 came into force on January 1st, the AI chatbot Grok sparked a controversy by generating inappropriate content, prompting action from Malaysian Communications and Multimedia Commission (MCMC).

Lawyers Ong Johnson and Lo Khai Yi dissect this new regulatory landscape. We explore whether ONSA is a necessary shield against digital harm or a potential "political tool" for censorship, and what the RM10 million penalty cap means for tech giants operating in Malaysia.

We discuss:

• The "Grok" Precedent: How the recent AI chatbot controversy served as the first real test case for MCMC's new powers under ONSA.

• Who is Targeted? A breakdown of the three key entities regulated by the act: ASPs (Social Media like X/Facebook), CASPs (Content providers like Netflix/Infotainment), and NSPs (Telcos).

• The "Teeth" of the Law: Analysing the severe penalties, up to RM10 million for serious non-compliance, and whether this is enough to compel Big Tech to change their platform design.

• Reporting Mechanisms: The two distinct routes users now have to report harmful content (Direct to Platform vs. Direct to MCMC).

• The "Proactive" Shift: Why companies must move from reacting to reports to proactively moderating content before the MCMC’s upcoming Code of Practice makes it mandatory.