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    Thailand Competition Act Report

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    MR
    The document provides information about Thailand and its economy and trade competition laws. Some key points: - Thailand, formerly known as Siam, has a population of over 68 million and was never colonized by a European power. It has a constitutional monarchy and was interim military-run from 2014-present. - Buddhism is the dominant religion. The economy's GDP was over $1 trillion in 2015, ranking 21st globally. Top industries are household consumption, government consumption, and investment. - The Trade Competition Act of 1999 prohibits monopolies, anticompetitive mergers and agreements, and unfair trade practices. It established the Trade Competition Commission to oversee enforcement and authorize exemptions in some cases.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Thailand Competition Act Report

    Uploaded by

    MR
    35 views32 pages
    The document provides information about Thailand and its economy and trade competition laws. Some key points: - Thailand, formerly known as Siam, has a population of over 68 million and was never colonized by a European power. It has a constitutional monarchy and was interim military-run from 2014-present. - Buddhism is the dominant religion. The economy's GDP was over $1 trillion in 2015, ranking 21st globally. Top industries are household consumption, government consumption, and investment. - The Trade Competition Act of 1999 prohibits monopolies, anticompetitive mergers and agreements, and unfair trade practices. It established the Trade Competition Commission to oversee enforcement and authorize exemptions in some cases.

    Original Description:

    Competition Law of Thailand

    Original Title

    Thailand Competition Act Report (1)

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    © © All Rights Reserved

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    The document provides information about Thailand and its economy and trade competition laws. Some key points: - Thailand, formerly known as Siam, has a population of over 68 million and was never colonized by a European power. It has a constitutional monarchy and was interim military-run from 2014-present. - Buddhism is the dominant religion. The economy's GDP was over $1 trillion in 2015, ranking 21st globally. Top industries are household consumption, government consumption, and investment. - The Trade Competition Act of 1999 prohibits monopolies, anticompetitive mergers and agreements, and unfair trade practices. It established the Trade Competition Commission to oversee enforcement and authorize exemptions in some cases.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    35 views32 pages

    Thailand Competition Act Report

    Uploaded by

    MR
    The document provides information about Thailand and its economy and trade competition laws. Some key points: - Thailand, formerly known as Siam, has a population of over 68 million and was never colonized by a European power. It has a constitutional monarchy and was interim military-run from 2014-present. - Buddhism is the dominant religion. The economy's GDP was over $1 trillion in 2015, ranking 21st globally. Top industries are household consumption, government consumption, and investment. - The Trade Competition Act of 1999 prohibits monopolies, anticompetitive mergers and agreements, and unfair trade practices. It established the Trade Competition Commission to oversee enforcement and authorize exemptions in some cases.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 32

    THAILAND

    Presented by Eric Estrella, Toni Narciso, and Ariane Tan

    The Kingdom of Thailand


    Known as Siam until 1939
    The only Southeast Asian country never to have been colonized by a European
    country
    Traditional founding in 1238
    51st country in the world in terms of total area
    Total area of 513,120 sq km
    Bordered by Cambodia, Burma, Laos and Malaysia
    A constitutional monarchy was established in 1932 through a
    bloodless revolution
    Interim military-run government since May 2014

    The Thai People

    68,200,824 (as of July 2016)


    21st most populous country in the world
    Thai (singular and plural)
    Thai 95.9%, Burmese 2%, others 1.3%, unspecified 0.9% (as of 2010)
    Thai 90.7%, Burmese 1.3%, others 8% (as of 2010)
    English as the second language of the elite
    Buddhist (official) 93.6%, Muslim 4.9%, Christian 1.2%, others 0.2%, none
    0.9% (as of 2010)

    The Thai Economy


    GDP (purchasing power parity)
    $1.108 trillion (2015)
    $1.078 trillion (2014)
    $1.069 trillion (2013)
    21st in the world
    GDP (per capita)
    $16,100 (2015)
    $15,700 (2014)
    $15,700 (2013)

    The Thai Economy


    46th country in terms of ease of doing business
    3rd among ASEAN member states
    78th country in terms of starting a business
    Labor force of 38.55 million (as of 2015)
    GDP composition by end use (as of 2015)
    Household consumption 51.5%
    Government consumption 17.2%
    Investment in fixed capital 24.9%
    Investment in inventories -5%

    The Thai Economy


    Human Development Index
    93rd in the world (2014)
    4th in ASEAN
    Considered as having a High Human Development Index (Very High to
    Low)
    0.726 (2014)
    0.724 (2013, 71st)
    0.723 (2012)
    0.721 (2011)

    Thailand Trade Competition Act


    The Thailand Trade Competition Act (hereinafter called the Competition Act)
    began with the enactment of the Price Fixing and Anti-Monopoly Act of 1979.
    The 1979 Act consists of two parts: the price fixing part and the anti-monopoly
    part.
    The anti-monopoly part of the 1979 Act is aimed at promoting fair competition.
    It empowers the Central Committee to look after business structures that may
    create monopoly and conduct restrictive business practices.

    Thailand Trade Competition Act


    Since the Act created problems for enforcement, the Department of Internal Trade,
    which is in charge of the Act, made an adjustment to the Act by separating it into
    two Acts :
    The Price of Goods and Services Act, and the Competition Act
    The Competition Act came into effect on April 30, 1999

    Scope and Exemptions


    Scope: Business Operators within the territory of Thailand (Section 3)
    Exemptions:
    Section 4: This Act shall not apply to the act of:
    (1) Central administration, provincial administration or local administration;
    (2) State enterprises under the law on budgetary procedure;
    (3) Farmers' groups, cooperatives or cooperative societies recognised by law and having
    as their object the operation of businesses for the benefit of the occupation of farmers;
    (4) Businesses prescribed by the Ministerial Regulation, which may provide for
    exemption from the application of this Act in whole or only in respect of any provisions
    thereof.

    Prohibited Acts

    Monopolies and Abuse of Dominant Market Position


    Anticompetitive Mergers
    Anticompetitive Agreements (Cartels)
    Anti-Monopoly or a Reduction of Competition
    Unfair Trade Practice

    Monopolies and Abuse of Dominant Market Position


    Section 25. A business operator having market domination shall not act in any of the
    following manners:
    (1) unreasonably fix or maintain purchasing or selling prices of goods or services;
    (2) unreasonably fix compulsory conditions, directly or indirectly, requiring other
    business operators who are his customers to restrict services, production, purchase
    or distribution of goods, or restrict opportunities in purchasing or selling goods,
    receiving or providing services or securing credits from other business operators;

    Monopolies and Abuse of Dominant Market Position


    (3) suspending, reducing or restricting services, production, purchase, distribution,
    deliveries or importation without justifiable reasons, destroying or causing damage
    to goods in order to reduce the quality to that lower than the market demand;
    (4) intervening in the operation of business of other persons without justifiable
    reasons.
    Note: No exemptions

    Anticompetitive Mergers
    Section 26. A business operator shall not merge businesses, which may result in
    monopoly or unfair competition as prescribed and published in the Government
    Gazette by the Commission unless the Commission's permission is obtained.
    The publication by the Commission under paragraph one shall specify the minimum
    amount or number of market share, sale volume, capital, shares or assets in respect
    of which the merger of businesses is governed thereby.

    Anticompetitive Mergers
    The merger of businesses under paragraph one shall include:
    (1) a merger made by a manufacturer with another manufacturer, by a distributor
    with another distributor, by a manufacturer with a distributor, or by a service
    provider with another service provider, which has the effect of maintaining the
    status of one business and terminating the status of the other business or creating a
    new business;
    (2) a purpose of the whole or part of assets of another business with a view to
    controlling business administration policies, administration and management;

    Anticompetitive Mergers
    (3) a purpose of the whole or part of shares of another business with a view to controlling
    business administration policies, administration and management;
    The application by a business operator for the permission under paragraph one shall be
    submitted to the Commission under section 35.
    Note: Under Sec. 37(1) of the Act, a merger can be authorized, provided that it is
    reasonably necessary in the business, beneficial to business promotion, has no serious
    harm to the economy and has no effect on due interests of general consumers. Also,
    under Sec. 37(2), mergers may be approved under conditions.

    Anticompetitive Agreements (Cartels)


    Section 27. Any business operator shall not enter into an agreement with another
    business operator to do any act amounting to monopoly, reduction of competition or
    restriction of competition in the market of any particular goods or any particular
    service in any of the following manners:
    (1) fixing selling prices of goods or services as single price or as agreed, or restrict
    the sale volume of goods or services;
    (2) fixing buying prices of goods or services as single price or as agreed, or restrict
    the purchase volume of goods or services;

    Anticompetitive Agreements (Cartels)


    (3) entering into an agreement to have market domination or control;
    (4) fixing an agreement or condition in a collusive manner in order to enable one
    party to win a bid or tender for the goods or services or in order to prevent one party
    from participating in a bid or tender for the goods or services;
    (5) fixing geographical areas in which each business operator may distribute or
    restrict the distribution of goods or services therein or fixing customers to whom
    each business operator may sell goods or provide services to the exclusion of other
    business operators from competition in the distribution of such goods or services;

    Anticompetitive Agreements (Cartels)


    (6) fixing geographical areas in which each business operator may purchase goods
    or services or fixing persons from whom business operators may purchase goods or
    services;
    (7) fixing the quantity of goods or services which or to which each business
    operator may manufacture, purchase, distribute, or provide services with a view to
    restricting the quantity to be that lower than the market demand;
    (8) reducing the quality of goods or services to a level below that of previous
    production, distribution or provision, whether the distribution is made at the same or
    at a higher price;

    Anticompetitive Agreements (Cartels)


    (9) appointing or entrusting any person as a sole distributor or provider of the same
    goods or services or those of the same kind;
    (10) fixing conditions or procedures in connection with the purchase or distribution
    of goods or services in order to ensure the uniform or agreed practice.
    In the case where it is commercially necessary that the acts under (5),(6),(7),(8),(9)
    or (10) be undertaken within a particular period of time, the business operator shall
    submit to the Commission under section 35 an application for permission.
    Note: with exemptions

    Anti-Monopoly or a Reduction of Competition


    Section 28. A business operator who has business relation with business operators
    outside the Kingdom, whether contractual or through policies, partnership,
    shareholdings or in the form of relation of any other similar description, shall not
    carry out any act in order that a person who is in the Kingdom and intends to
    purchase goods or services for personal consumption will have restricted
    opportunities to purchase goods or services directly from business operators outside
    the Kingdom.
    Note: No exemptions

    Unfair Trade Practice


    Section 29. A business operator shall not carry out any act which is not free and fair
    competition and has the effect of destroying, impairing, obstructing, impeding or
    restricting business operation of other business operators or preventing other persons
    from carrying out business or causing their cessation of business.
    Note: No exemptions

    Threshold Requirements
    Prohibited Mergers and Acquisitions
    Prior to or after the merger, the businesses have market shares equivalent to or
    exceeding 30% and total revenues in the previous year equal to or exceeding 2
    Billion Baht in any product or service; or
    With respect to an acquisition of voting shares, the above thresholds are met
    and:
    With respect to a public limited company, the acquisition reaches or
    exceeds 25% of all voting rights;
    With respect to a private limited company, the acquisition reaches or
    exceeds 50% of all voting rights.

    Threshold Requirements
    Monopolies and Abuse of Dominant Market Position
    Business operators have a dominant position when the following thresholds are met:
    Market share exceeding 50% and a turnover of at least 1,000 million THB in the
    previous year;
    Top 3 BOs with combined market shares exceeding 75% and a turnover of at
    least 1,000 million THB in the previous year, except business operators whose
    market share is less than 10% or whose turnover is less than 1,000 million THB
    (Sec. 3 of the Act in relation to the Notice on Dominant Business Operators
    with Market Domination).
    Note: The act includes both single and collective dominance.

    Threshold Requirements
    Monopolies and Abuse of Dominant Market Position
    Section 30. The Commission shall have the power to issue a written order requiring a
    business operator who has market domination, with the market share of more than 75% to
    suspend, cease, or vary the market share. For this purpose, the Commission may prescribe
    rules, procedure, conditions and time limit for compliance therewith.

    Enforcement Body
    The Competition Commission (hereinafter called the Commission) is
    responsible for the enforcement of the Act.
    It consists of
    the Minister of Commerce as Chairman,
    the Permanent-Secretary of the Ministry of Commerce as Vice-Chairman,
    the Director-General of the Department of Internal Trade as Member and
    Secretary, and
    the Permanent-Secretary of the Ministry of Finance, and no more than twelve
    other qualified persons as members,

    Enforcement Body
    These qualified persons appointed as members must not be
    political members,
    holders of political positions,
    executive members or holders of positions with the responsibilities in the
    administration of political parties.
    They shall hold office for a term of two years and not more than two
    consecutive terms in case they are re-appointed.

    Enforcement Body
    The Commission shall have the powers and duties
    to consider complaints,
    to prescribe rules for dominant position,
    to consider an application for permission to merge business,
    to initiate the joint reduction or restriction of competition, or
    to give orders for suspension, cessation, correction, or variation of activities by
    business operations.

    Penalties
    Failure to abide by the provisions of the Competition Act could result in
    jail terms of between one to three years and/or
    fines ranging from two to six million baht.
    Under the Act, such penalties may be applied
    not only to the enterprises
    but also to their managing partner or person in charge of operations, unless
    the offence at stake was committed without his/her knowledge or consent
    and/or
    reasonable measures were taken to prevent such offence.

    Commission's Rulings
    During the first seven years of the TCA, only three cases have been ruled upon by
    the Commission
    UBC Case
    Beer-Whiskey Tying Case (Chang Beer Case)
    Honda Case

    Proposed Amendments
    The amended Act introduces more stringent and extensive provisions:
    The definition of "business operator" is broader.
    Violations committed outside Thailand are punishable. Any violations that have an
    anticompetitive effect on Thailand would be punishable in Thailand.
    The OTCC must be notified of certain merger activities.
    Criminal penalties will be adjusted.
    The OTCC, at its discretion, may decrease the fines imposed on business operators.
    State enterprises will be subject to the Act.
    State enterprises that are subject to the Act and engage in anticompetitive practices may
    incur both criminal and civil penalties.

    Proposed Amendments
    The definition of "market dominant operator" (MDO) will be reviewed and revised at
    least once every five years. The OTCC is empowered to determine the criteria to be
    classified as an MDO.
    If a business operator is classified as market dominant, its obligations and scrutiny
    under the Act would be higher.
    Companies face much heftier fines for violations of the new Act.

    THE END

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