Bangkok: Academics support the Trade Competition Commission, the Consumer Protection Board, and the Electronic Transactions Development Agency (ETDA) in unlocking transportation company monopolies to create fairness in e-commerce.
According to Thai News Agency, Thammasat University academics point out that the move by the Competition Commission of Thailand (CCT), the Consumer Protection Board (CPB), and Electronic Transactions Development Agency (ETDA) to issue a regulation decriminalizing the monopoly of transportation companies in the digital platform business is a positive step. This will allow for fair competition, preventing any business from being unfairly excluded from the market, and providing sellers on platforms with cost-effective options, eliminating the need to bear unnecessary shipping costs.
Associate Professor Dr. Wanwipang Manachotipong, a lecturer at the Faculty of Economics, Thammasat University, revealed that the push for the draft guidelines on considering unfair trade practices in digital platform (E-Commerce) businesses, undertaken by the Trade Competition Commission (TCC), the Office of the Consumer Protection Board (OCPB), and the Electronic Transactions Development Agency (ETDA), which will come into effect soon, is a positive milestone for the e-commerce sector. This law will provide greater clarity on behaviors or actions that violate the Trade Competition Act B.E. 2560 (2017), helping businesses, especially small and new entrants, to receive fair treatment and avoid being forced out of the market due to unfair market mechanisms that hinder competition.
Asst. Prof. Dr. Wannawipang stated that she personally believes the regulatory framework for digital platform businesses under the announcement is reasonable. For example, prohibiting platforms from designing systems that force sellers or buyers to use only one delivery service provider, or scrutinizing unusually low pricing to hinder smaller competitors, as well as the maximum penalty of a fine not exceeding 10% of the revenue in the year the offense was committed, are considered high enough to deter businesses from violating the regulations. However, she cautioned that there might be cases where businesses do not fully understand the regulations and commit offenses resulting in high fines that force them out of the market. She believes that in practice, the Competition Commission considers the severity of the offense and determines the fine proportionally within the established framework of not exceeding 10% of the annual revenue for that year.
Asst. Prof. Dr. Wannawipang further stated that, regarding what will happen after this announcement comes into effect, particularly the requirement for platforms to allow for independent competition in logistics services, sellers on digital platforms will have the right to choose the most suitable transportation service provider. Market mechanisms will determine the transportation service provider, leading to flexibility, cost savings, and benefits for both businesses and consumers.
A Thammasat University scholar also stated that although this announcement seems to affect large businesses more than small ones, the law itself focuses on unfair practices, such as unfair selection of business partners, or even choosing partners who may have good or close relationships to collude in obstructing other service providers, thereby disrupting or hindering market competition, etc. Therefore, it is not specifically targeting large or small businesses, because if businesses of the same size engage in unfair practices, the law will also protect those businesses that are treated unfairly.
It is important for businesses to understand that illegal actions under the Trade Competition Act are not limited to those specified in the new regulations that are about to be released. There are many more possible illegal actions than can be defined in writing. The additional regulations are merely examples to provide a clearer picture. Therefore, it is crucial to study the full Trade Competition Act in detail.