Trade Competition Act B.E. 2560 Office of Trade Competition Commission
Trade Competition Act B.E. 2542 Act Governing Trade with Excessive Profits B.E. 2490 (Price control) Act Governing Prices of Goods and Prevention of Monopoly B.E. 2522 (Prevention of a monopoly power) Trade Competition Act B.E. 2542 (Protecting competition, not competitors) Act on Prices of Goods and Services B.E. 2542 (Ensuring sufficient quantity of goods and services with reasonable prices) 20 40 52
Trade Competition Act B.E. 2560 Social welfare Economic welfare Enhancing Competitiveness Utilization of Resource Creativity & Innovation Enabling Trading Environment Market Access Promoting Free & Fair Trade
Market Structure Perfect Competition Many s Imperfect Competition Monopolistic Competition Monopoly Duopoly Oligopoly Large Single 1 2 s 4-8 s 8-15 s
Market Suppliers Suppliers Suppliers Distribution Manufacturers Manufacturers Vertical Restraint Distributors Distributors Distributors Horizontal Restraint Wholesalers Wholesales Wholesalers Wholesalers Retailers Retailers Retailers Retailers Retailers Retailers Retailers Consumers Consumers Consumers Consumers Consumers Consumers Consumers Consumers Consumers Consumers Consumers
Market Segmentation Geographic Market Product Market Cross Elasticity of Supply Cross Elasticity of Demand Beer Bottled water Liquor Soda water Soft drink Green tea flavored drink Mechanical pencil Pencil Cleaning service Garage Hotel & Accommodation Fruit juice Ice manufacturing Restaurant Security
Regulating Anti-competitive Conducts (International Standard) Protect Competition (not Competitors) & Protect Consumers Abuse of Dominant Position in a Market Merger and Acquisition Restrictive Agreement or Arrangement Unfair Trade Practice Unreasonable Agreement with a Foreign Firm Trade Competition Act B.E. 2560 Section 50 Section 51 Section 54 Section 55 Section 57 Section 58 Abuse of Dominant Position in a Market Criminal Notification after M&A M&A that may reduce competition Within 7 days Request for Permission of M&A M&A that results in a monopoly or a dominant position in a market Joint conducts that cause serious harm to competition Criminal Joint conducts that cause less harm to competition Unfair Trade Practice Unreasonable agreement with a foreign firm causing serious impacts on the economy and consumers
Abuse of Dominant Position Firms shall not abuse their dominant position in a market Criteria for consideration of dominant position Market Share Sales Revenue Prohibited Conducts Conducts considered an abuse of a dominant position in a market 50% 1 st 75% 2 nd 3 rd Revenue Unfairly fix purchasing or selling price of goods or services Sale below cost Predatory pricing Discriminatory pricing Impose unfair compulsory conditions on trading partners Conditions after sale Territorial restrictions on resale Tying sale Resale price maintenance Unreasonably suspend, reduce, or limit service provision, production, purchase, sale, delivery, or importation of goods Intervene business operation of other firms Conducts that control relevant market of goods or services Restrict access to a relevant market or inappropriately restrict competition Cause or tend to cause serious impacts on trade or economic development Competition Factors Number of firms Distribution channels Networks Rules and regulations Amount of investment Access to production factors infrastructure
Business Combination Mergers and acquisitions that cause a monopoly or unfair competition are regulated. A B A A B C A B A C B Mergers & De-mergers Cross Investment Takeover * Acquisition of shares of assets Holding company Joint ventures Inter-locking directorate Permission must be granted: Notification only: Monopoly Dominance Significant to the market Extra Large Large 100% By Product or Service Medium Small By Business Registration Micro
Vertical Restrictive Agreements Firms shall not jointly act to monopolize, restrict or reduce competition. Cartel Suppliers Wholesalers Horizontal Hardcore Cartel per se illegal Joint agreements among firms who are competitors that will cause competition to no longer exist in a market of good or service. This conduct is a serious violation and does not need to prove effects of the conduct. These conducts are: 1 2 3 4 Price fixing Quantity restriction Bid rigging Market allocation Retailers Non-Hardcore Cartel Joint agreements among firms that are competitors and noncompetitors that cause reduction of competition in a market but can be necessary due to business reasons. Rule of Reason Quality reduction + same or higher price Appointing or assigning a sole distributor Setting conditions for purchase or sale as agreed Others as prescribed in the Commission s notification Single economic entity Research and development Exceptions Specific patterns of agreements Others as prescribed in the Commission s notification
Unfair Trade Practices Firms shall not undertake an unfair trade practice resulting in damages on other firms. This conduct is undertaken by a firm against another firm without effects on the overall economy. Most conducts include utilization of superior economic or negotiating power, which are considered conducts without ethics or good governance. Specific manners of unfair trade practices are indicated. Unfair Low-Price Sale/Loss Leader Unfairly obstruct business operation of other firms Unfairly utilize superior market power or superior bargaining power Abuse of Dominant Bargaining Position Resale Price Maintenance Tying Contract - Tying Sale Interference with Transaction Exclusive Dealing Price Discrimination Refusal to Deal Unfairly set trading conditions that restrict or prevent business operation of others Other conducts as prescribed in the Commission s notification
Unreasonable Agreement with Foreign Firm Unreasonable agreement with a foreign firm that seriously impacts the economy and consumers Legal acts having effects of restricting competition Firm Legal act Contract Firm 100% Monopoly Trade and economy Foreign Thai Unfair restriction of competition The public Being affected and receiving serious harm
Enforcement Independent Organization Commissioners Office Of Trade Competition Commission Secretary-General Deputy Secretary-General Expert Expert Expert Internal Auditor Division Business Intelligence Division Investigation Division Legal Division
Punishments Trade Competition Act B.E. 2560 Section 50 Section 51 Section 54 Section 55 Section 57 Section 58 Criminal Criminal M&A Notification Request for M&A Permission < 10% of turnover in the year of offense <0.2 mil. Baht <0.5% of M&A transaction value < 10% of turnover in the year of offense < 10% of turnover in the year of offense < 10% of turnover in the year of offense < 10% of turnover in the year of offense <2 years <0.01 mil. Baht/day <2 years Note : offence in the first year of operation fine <1 mil.baht Violation of the Commission s Order fine Order cease-suspend-correctchange conducts Firms Violation <6.0 mil. Baht <0.3 mil. Baht/day
Office of Trade Competition Commission Website otcc.dit.go.th Line Fan Page 0-2507-5883-85
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