New adjustment of Trade Competition Act


Warning: strtotime() [function.strtotime]: It is not safe to rely on the system's timezone settings. You are *required* to use the date.timezone setting or the date_default_timezone_set() function. In case you used any of those methods and you are still getting this warning, you most likely misspelled the timezone identifier. We selected 'UTC' for '+08/8.0/no DST' instead in /home/broadhur/public_html/mcwaldenbailey.com/templates/news_detail.php on line 55

Warning: date() [function.date]: It is not safe to rely on the system's timezone settings. You are *required* to use the date.timezone setting or the date_default_timezone_set() function. In case you used any of those methods and you are still getting this warning, you most likely misspelled the timezone identifier. We selected 'UTC' for '+08/8.0/no DST' instead in /home/broadhur/public_html/mcwaldenbailey.com/templates/news_detail.php on line 55
June 15, 2011



Mr.Anuruth Khokarsai, Advisor of the Minister of Commerce as Chairman of the Subcommittee specializing on regulations of ‘Business Operator with Market Domination’, revealed that the Subcommittee meeting’s resolution set the new criteria of Business Operator with Market Domination by reducing its sales volume from 1,000 million to 500 million Baht per year. This criterion will apply the same to all businesses for supervising monopolized businesses after an inspection indicated the complete big businesses mostly set up both horizontal and vertical system of subsidiary companies to avoid the inspection. The definitions of ‘subsidiary company’ shall be added in Trade Competition Act B.E.2542.



Mr. Anuruth said there are a great number of big business nowadays operate in Thailand and  their businesses grow horizontally and vertically by setting up subsidiary companies or doing complete business that in the past, Thai law has a gap of interpretation which a single Business Operator means one juristic person and this interpretation causes the Trade Competition Commission failing to take such Business Operator as guilt.

This new criteria of Business Operator with the Market Domination is comparably considered among other countries, including United States, Europe, Asia and ASEAN that it shall also be modernized and conformed with Thailand businesses.

Furthermore, the subcommittee also offers the additional definitions of "Business Operator" and "Business Operator with Market Domination" to cover its subsidiary company, following the international standard to have fair trade competitions.

This draft criteria has presented to Mrs. Pornthiwa Nakasai , Minister of Commerce, to offer to the Trade Competition Commission and then respectively present to the Council of Ministers (Cabinet) for the next consideration.

The criterion of Business Operator with Market Domination is divided into 3 levels:
Level 1 is Business Operator who has a market share of 50% or more;
Level 2 is Business Operator who has a market share of 30% or more;
Level 3 is three Business Operators who have market shares of 75% or more;

Remark:  The level 2 and 3 must be considered, together with other factors comprising abilities to control a market, obstacles to enter a market, potentials of competitors, restrictions of competition and others.

Notwithstanding, the criteria excepts the Business Operator which has a market share less than 10% or sale volumes less than 500 million Baht in the previous year.

Therefore, the modification in criteria of Business Operator with Market Domination under the Trade Competition Act B.E. 2542 will decrease the gap of legislation and make Thai trade competition fairer. Thai Business Operator in small and medium enterprises (SMEs) can also compete and grow in the market. Eventually, Thailand fairness to all consumers shall be arisen.

After the aforesaid criteria has been approved, some business categories shall be within the scope of Business Operator with Market Domination; such as, diesel oil, beer, chemical fertilizer, tin-plate, soy milk, canned fish with sauce, polymer, tire and pulp.



(Disclaimer: The information provided on this site is for informational purposes only. No warranty is expressed or implied.The inclusion of any News or Information does not imply reliability and endorsement by us of, and we accept no liability in respect of, the content. Before taking any legal action, persons are advised to seek the advice of a lawyer qualified in the area of law concerned.)



The Thai Chamber of Commerce British Chamber of Commerce Singapore-Thai Chamber of Commerce Thai-Hong Kong Trade Association Broadhurst (Pacific) Co.,Ltd. Curtis Fords Co., Ltd.