Competition Law at Thailand
Here’s an overview of Competition Law in Thailand:
🇹🇠Competition Law in Thailand
1. Legal Framework
Thailand’s primary competition legislation is the:
Trade Competition Act B.E. 2560 (2017)
This law replaced the earlier 1999 Act and significantly modernized the country's competition framework.
It applies to all business operators in Thailand, both Thai and foreign, unless exempted.
2. Key Provisions
Prohibited Agreements (Cartels):
Agreements between competitors to fix prices, limit production, allocate markets, or rig bids are illegal.
Abuse of Dominant Position:
Dominant firms (based on market share and turnover thresholds) are prohibited from unfairly restricting market competition, such as predatory pricing or refusal to deal.
Merger Control:
Mergers above certain market share or revenue thresholds must be notified or pre-approved by the Trade Competition Commission (TCC).
There are both post-merger and pre-merger notification requirements, depending on the impact on market competition.
Unfair Trade Practices:
Businesses are prohibited from engaging in conduct that causes damage to other businesses, including coercive contract terms or unjustified price discrimination.
3. Enforcement Authority
The Office of Trade Competition Commission (OTCC) is the main enforcement body.
The OTCC has broad investigative powers and can impose administrative penalties.
4. Sanctions and Penalties
Fines: Up to 10% of annual turnover for serious violations like cartels or abuse of dominance.
Criminal penalties (including imprisonment) can apply to individuals involved in cartels.
The OTCC can also issue cease-and-desist orders and nullify anti-competitive agreements.
5. Recent Trends and Developments
Active enforcement in digital markets and e-commerce platforms.
Increased focus on merger control in sectors such as telecommunications and retail.
Continued alignment with international best practices, including those of the EU and ASEAN.
Summary
Thailand has a modern and active competition regime under the Trade Competition Act B.E. 2560 (2017).
The OTCC is a strong enforcer, particularly in high-impact markets.
Companies operating in Thailand must comply with merger control rules and avoid anti-competitive conduct.
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