Over Twenty Years of Implementation: Reflecting on the Contribution of Thailand’s Trade Competition Act with Respect to Merger Control

Abstract

In light of economic development, competition law plays an important role in the control and sanctioning of business operators conducting anticompetitive activities within a jurisdiction. In Thailand, the first Trade Competition Act was passed in 1999 (the “1999 Act”), with the purpose of protecting consumers from unfair trade practices, shielding businesses from anticompetitive behavior, and facilitating the development of the country’s economy. The 1999 Act was later repealed by the Trade Competition Act 2017 (the “2017 Act”), replacing all existing laws on trade and market competition under the 1999 Act, and providing more stringent regulations and safeguards to prevent anticompetitive activities and promote fair competition in all economic sectors of Thailand. For over 20 years, the Trade Competition Act has been successful in creating a framework for economic growth. However, it has been ineffective due to several factors, such as weak legislation and lack of effective enforcement. Specifically, two recent landmark cases involving mega acquisitions could potentially pose serious risks to consumers and the entire Thai economy. This article aims to firstly provide a brief overview of Thailand’s economic development and mainly discuss about an overview of Thailand’s competition law since the enactment of the 1999 Act, followed by amendments to the law in 2017. Landmark cases relating to merger control are provided and discussed. Lastly, proposals to amend the laws pursuant to such landmark cases are presented.