OECD kpcdb

1. Scope

 

Section 50 of the Act prohibits a business operator with a dominant market position from abusing its dominance. The Act prescribes that the market dominant undertaking shall not act in any of the following manners:

 

• Unfairly fix or maintain purchasing or selling prices of goods or fees for services; 
• Impose an unfair condition requiring other business operators who are his or her trading to restrict services, production, purchase or distribution of goods, or restrict opportunities in purchasing or selling goods, receiving or providing services or obtaining credits from other business operators; 
• Suspend, reduce or restrict services, production, sale, delivery or importation without justifiable reasons, or destroying or causing damage to goods to ensure a lower quantity of goods available on the market than what market demand requires; and
• Intervene in the operation of business of other persons without justifiable reasons.

 

2. Assessment

 

When determining dominance, the Commission takes into account market share factors as well as non-market-share factors, such as number of competitors, amount of capital, access to key production factors, distribution channels, business networks, etc... The Commission will issue guidance on thresholds for market share and sales revenue thresholds to determine market dominance. These shall be reviewed every three years.

 

3. Remedies and sanctions

 

Under Section 72, infringements of Section 50 are subject to criminal penalties, with violations punishable by imprisonment not exceeding two years or a fine of not more than ten percent of turnover in the year of the offence or both. In the case of an offence committed during the first year of business operation, the person shall be subject to up to two years of imprisonment and a fine not exceeding THB 1 million or both.

 

However, the OTCC did not impose any sanctions or remedies over the past 5 years under the previous competition law.

 

 

* This information is based on Competition Law in Asia-Pacific: A Guide to Selected Jurisdictions (2018).