OECD kpcdb

1. Scope

 

Section 51 prohibits any business merger which may result in monopoly or unfair competition as prescribed by and published in the Government Gazette by the Commission, unless the Commission’s permission is obtained.

 

Here, the mergers of businesses under Section the above mentioned paragraph shall include the following:

 

a)  A merger […] which has the effect of maintaining the status of one business and terminating the status of the another business or creating a new business. 

b)  Acquisition of the whole or part of assets of another business in view of controlling business administration policies, direction or management. 

c)  Acquisition of the whole or part of shares of another business with in view of controlling business administration policies, direction or management. 

 

2. Notification

 

Section 51 provides for a dual system, with a post-notification and a pre-merger permission system.

 

Under para 2 of Section 51, approval by the Commission is required for a merger of businesses which may result in monopoly or in a dominant position. 

 

A post-notification system is in place for a business operator who engages in a merger that may cause significant decrease of competition in a particular market (para 1 of Section 51), pursuant to criteria of notification to be set out by the Commission. The parties must notify within 7 days of merging date.

 

The Commission will issue rules with further criteria and thresholds for notification.

 

3. Procedural Rules

 

Regarding those transactions that require a prior approval of the Commission (merger to monopoly or that create a dominant position), the Commission shall complete its procedure within 90 days from the request receipt date. An extension of 15 days shall be given with reasons why it was necessary. 

 

Procedural fairness: Under Section 61, the Commission shall indicate reasons for granting or not granting a permission to merge covering both factual and legal aspects. 

 

4. Assessment 

 

See Section 3.II above for criteria for assessment of a dominant position.

 

When granting a permission under para 2 of Section the Commission shall consider granting a permission with recognition of proper needs for businesses, benefits to support a business operator, and that no severe damage to the economy or impact on substantial benefits to consumers as a whole occurs. 

 

5. Remedies and sanctions 

 

Under Section 60 the Commission shall have the power to make an order in writing to instruct that the parties to the transaction to suspend, stop, or correct or change such conduct. This shall be in accordance with criteria, methods, conditions, and the time period prescribed by the Commission. 

 

In case there is a permission order, the Commission may set a time period or any condition for the business operator granted a permission to follow. 

 

The business operator hall have a right of appeal in an administrative court within 60 days from the order notification date. 

 

The failure to file a notification under paragraph 1 Section 51 or obtain a clearance shall be subject to an administrative fine of not more than THB 200,000 and a further fine of not more than THB 10,000 per day during the time of violation. 

 

Any person violating Section 51 paragraph two shall be subject to an administrative fine of not more than 0.5 percent of transaction value of the merger.