12 March, 2020
Since the new Trade Competition Act B.E. 2560 (2017) (the “TCA”) came into force on 5 October 2017, the TCA is the main legislation regulating business operators (the “Operator”) in Thailand on issues of free and fair trade competition purposes.
With the repeal of the Trade Competition Act B.E. 2542 (1999), the TCA established the new Office of Trade Competition Commission (the “OTCC”), an independent agency that has the power to order the Operator to suspend, cease, or rectify any action for the prevention of monopolies and unfair trade practices.
The TCA prescribes for restriction on the actions of the Operator, either on themselves or with other Operators. Examples of such restrictions includes situations where the Operator with a dominant market position is restricted from fixing unfair conditions requiring another Operator who is trade partner to restrict services, production, purchase or distribution of goods or restrict opportunities in purchasing or selling goods, receiving or providing services or obtaining credit from other Operator or unreasonable intervening the operation of business of other Operator, etc. Any violations of the TCA by the Operator is punishable by a criminal and/or administrative penalties.
For more information, please contact:
Threenuch Bunruangthaworn, Partner, ZICO Law (Thailand) Limited (a member of ZICO Law)
threenuch@zicolaw.com
