THAIBIZ No.155 Published in November 2024 Change Thailand’s tomorrow! Special feature on innovators
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Publication date 2024.11.11
This time, we will explain Thailand’s Trade Competition Law (equivalent to Japan’s Antimonopoly Law).
trade competition law
In Thailand, the Trade and Competition Act came into effect in 1999, and was subsequently revised in 2017 (hereinafter referred to as the “Law”). The Trade Competition Act regulates four types of conduct: (1) abuse of a dominant position, (2) business combinations, (3) acts that restrict competition, and (4) unfair trade practices.
abuse of dominant position
“Entrepreneur with a dominant position” refers to an entity that meets any of the following conditions:
(1) Businesses with a market share of 50% or more and sales of 1 billion baht or more in the previous business year
(2) The company is one of the top three companies with a market share, and the total market share of the top three companies in the previous business year was 75% or more, and the sales amount of each company in the previous business year was 1 billion baht. Business operators who are above
Businesses that meet the above conditions may not exercise a dominant position in the market in the following ways (Article 50 of the Act):
(A) Improperly fixing or maintaining the purchasing price or selling price of goods or services.
(B) Imposing unfair conditions on business partners to restrict services, production, purchase and sale of goods, purchase and sale of goods, receipt and provision of services, and granting of credit from other businesses. to limit the opportunity to receive
(C) Stopping, reducing, or restricting the provision of services, production, sales, delivery, or import, or destroying or damaging products with the purpose of reducing the quantity below market demand, without justifiable reason (D) Interfering in the business activities of others without justifiable reason
Business combination
A business combination refers to a relationship between companies through stock ownership, merger, etc. “Business combination” under this Act includes the following (Article 51, Paragraph 4 of the Act):
(1) Merge
(2) Acquiring all or part of the assets of another business operator in order to control the policy, business operations, direction, or management of that other business operator;
(3) Directly or indirectly acquiring all or part of the shares of another business operator in order to control the policy, management, direction, or management of that other business operator.
For certain types of business combinations, it is necessary to make subsequent or advance notification to the Trade Competition Commission as follows.
(A) Subsequent withdrawal (Article 51, Paragraph 1 of the Act)
Based on the criteria set forth in the Trade Competition Commission’s notification, businesses that engage in business combinations that have the potential to reduce competition in the market must report the results of the business combination to the Trade Competition Commission within seven days from the date of the business combination. must be notified to
(B) Prior withdrawal (Article 51, Paragraph 2 of the Act)
Businesses that wish to engage in business combinations that may create a monopoly or gain a dominant position in the market must obtain prior approval from the Trade Competition Commission.
Regarding advance notification, the Trade Competition Commission that receives the advance permission application is supposed to complete the procedure within 90 days from the date of receipt of the application (if unavoidable, it can be extended up to 15 days.Act 52 Article 1).
THAIBIZ No.155 Published in November 2024 Change Thailand’s tomorrow! Special feature on innovators
Go to download page
You can download it after logging in as a member on the issue page. If you are unable to download, we apologize for the inconvenience, but[email protected] Please contact us.
TNY International Law Office
Our office has Japanese lawyers who are well-versed in Thai and Japanese legal affairs, and we understand the regulations and difficult aspects of doing business in Thailand, so you can consult with us with confidence. Our experienced Thai and Japanese lawyers provide prompt and accurate services at reasonable prices.
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