Ross Dunkley founded the Myanmar Times in 2000 and former newspaper executive David Armstrong says he was detained at his residence late on Thursday.
Mr Armstrong is chairman of Post Media, a sister company of Myanmar Consolidated Media.
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The arrest of Dunkley, who holds a 49 per cent share in MCM, follows reports of growing conflict between him and Burmese shareholder Dr Tin Htun Oo who holds the remaining 51 per cent.
Mr Armstrong says the arrest coincides with tense and drawn out discussions between Mr Dunkley and the foreign ownership partners in the Myanmar Times.
Mr Dunkley is scheduled to face court on February 24.
