You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

February 8, 2023

Thailand’s Competition Law and Regulations: Background and Outlook for 2023

Subscribe to Updates

Thailand has a robust legal framework for competition, with laws and regulations in place to prevent anticompetitive conduct and market concentration and to promote fair competition. However, as the business environment in the country continues to evolve, it is important for companies operating in Thailand to stay informed about the latest developments in competition laws and regulations.

Generally, Thailand’s competition regime is based on the Trade Competition Act B.E. 2560 (2017) (the TCA) and its implementing regulations, except for certain industries which are governed by sector-specific competition regulations. The TCA is designed to promote free and fair competition by suppressing anticompetitive behaviors.

In this article, we will examine what businesses can expect in the coming year, and what they need to be aware of in order to stay compliant.

A Maturing Regulatory Structure

The Trade Competition Commission of Thailand (TCCT) is the agency responsible for enforcing competition laws and regulations in Thailand. The TCCT has the authority to oversee the market structure, act to maintain competitiveness in various industries, investigate misconduct, and take action against companies that engage in anticompetitive practices, such as abuse of market dominance, cartels, and unfair trade practices. It also has discretionary power to consider applications for a merger of two or more businesses that may cause monopoly or market dominance.

While the TCA and the TCCT had limited success in the decades after the original TCA’s enactment in 1999, a new TCA in 2017 made several significant changes to the previous version of the law. The 2017 TCA guarantees the independence of the TCCT from political and business interventions. It also introduces administrative penalties for less-serious offenses, including non-hardcore cartels, unfair trade practices, and neglect of merger filing duties.

Since then, the TCCT has been more active in its issuance of subordinate regulations to optimize the functionality of TCA provisions. A number of business-specific guidelines adopted from time to time address competition concerns in certain business sectors, such as modern trade, franchises, and food delivery services. The TCCT has also issued rules that purchasers must follow when setting credit terms for SMEs (small and medium enterprises).

The level of enforcement has also escalated, evidenced by more than 60 cases determined and concluded during 2019–2021—mostly regarding merger filings and unfair trade practices. In recent years, the TCCT has had oversight of several high-profile mergers, issuing remedies and closely keeping track of the companies’ business conduct to ensure compliance with fair trade and competition requirements. The administrative office of the TCCT has also accomplished the first proactive investigation procedures involving unannounced inspections, commonly known in some jurisdictions as “dawn raids,” conducted at the accused’s premises to obtain useful evidence for cartel misconduct.

TCCT’s academic role has also been well recognized. The TCCT has conducted market studies of many emerging industries, such as e-commerce and marketplace platforms, to understand business practices and identify potential anticompetitive behaviors. The TCCT also acknowledges that the TCA should not stop evolving in today’s complex economy. In collaboration with the Thailand Development Research Institute, the TCCT studied whether and how to improve the TCA and its enforceability, resulting in the proposal of significant amendments to the TCA.

The regulatory structure of Thailand’s competition regime has matured a great deal in the past five years. This increased reliability is likely to continue in 2023 as the TCCT looks to deal with concerns about today’s market conditions.

TCCT and Emerging Issues

One of the key areas of focus for the TCCT in the coming year will be the digital economy. With the rapid growth of e-commerce and online platforms, the TCCT will be closely monitoring the growing market power of these operators to ensure that competition is fair and that consumers’ selection of goods and services is not manipulated. This is particularly important as the COVID-19 pandemic has accelerated the shift to what the Thai government has called the “platform economy.” Recognizing that some plaftform operators’ conduct and trade conditions could damage competitors and trade partners, or restrict consumers’ choices, the TCCT set out to develop a new set of regulations and strategies to address these competition concerns. In this regard, the TCCT may adopt new legislation modeled on the Digital Markets Act of the European Union to more efficiently tackle anticompetitive conduct by digital marketplaces and online gatekeepers.

One of the TCCT’s missions in the year ahead will be to revitalize its existing regulations. The TCCT is prepared to raise the threshold for determining whether a company is in a position of market dominance, in light of the country’s economic growth and heightened inflation. Another area of focus is amendments to enhance the clarity of merger control rules and to extend the scope of control to certain types of mergers such as a full-function joint ventures, which are not yet clearly regulated under the current rules.

In terms of enforcement mechanisms, the TCCT is studying the possibility of implementing a leniency program that would grant immunity to whistleblowers who expose collusive arrangements. This leniency program would be a highly useful instrument for the TCCT in detecting cartels, similar to the success of leniency policies in exposing collusion in the United States, the European Union, Japan, and other jurisdictions.

Conclusion

Overall, businesses operating in Thailand can expect the TCCT to continue its efforts to promote fair competition and to intensify the level of enforcement in the coming year, with a particular focus on the digital economy and merger control. Companies should stay informed about the latest developments in competition laws and regulations and seek legal advice when necessary to ensure compliance. While competition is just one of the many areas of compliance that businesses have to uphold, enlisting outside assistance in maintaining a healthy and resilient presence in the market can greatly ease the burden.

Related Professionals

Practices

Antitrust and Competition

Corporate/M&A

Location

RELATED INSIGHTS​ 

October 31, 2025
On September 29, 2025, Thailand’s Office of the Personal Data Protection Committee (PDPC Office) published its Regulations on the Review and Certification of Binding Corporate Rules B.E. 2568 (2025) (the Regulations). The Regulations provide clarity on the PDPC Office’s approach to reviewing and certifying binding corporate rules (BCRs) under Section 29 of the Personal Data Protection Act B.E. 2562 (2019) (PDPA), and aim to facilitate international data transfers within a group of undertakings or enterprises (a “corporate group”). In conjunction with this development, the PDPC Office also approved BCRs for two companies operating in Thailand on September 30, 2025. This milestone represents the first concrete progress since the PDPC’s Notification on Criteria for the Protection of Personal Data Sent or Transferred to a Foreign Country pursuant to Section 29 of the PDPA B.E. 2566 (2023) came into effect in March 2024. Some key features of the Regulations are set out below. Categorization of BCRs BCRs are classified into two types: (1) BCRs for Controllers (BCR-C) and (2) BCRs for Processors (BCR-P). The category must be clearly specified when submitting the BCRs to the PDPC Office. Documentation Requirement The applicant must prepare and submit the application (a standard template may be provided by the PDPC Office in the future) along with supporting documents for review and certification in the Thai language. If the supporting documents are in a foreign language, a certified Thai translation should be provided. The translation must be notarized by a notary public or qualified person. Supporting documents may include, among others, a binding instrument such as an intra-group agreement, or a list of entities subject to the BCRs. Expedited Process Requirement Organizations with existing BCR approvals under the EU or UK GDPR, or from countries announced by the PDPC under Section 28, may apply through an
Read More
October 30, 2025
Recent events at a Thai listed company, where a proposal to remove the director was not successful, amid claims that a competitor was attempting to gain control of the company, illustrate how disputes over corporate control can unfold differently at the board level and shareholder level. At the board level, removing directors of a listed company mid-term to gain corporate control is not an easy task under Thai law, as it requires a higher threshold than appointing a new director, which typically only requires a simple majority vote in a listed company. At the shareholder level, Thailand’s tender offer and competition regimes add complexity where different shareholder groups act in concert to remove opposing board representatives or otherwise influence control. In this article, we will explore why the attempted removal of a director may fail, and how the tender offer regime may apply. Key Issues at a Glance Shareholder groups may seek to convene meetings to propose changes to board composition or company authority. Such proposals can be delayed or complicated by regulatory requirements and the need for additional disclosures. Regulatory authorities and minority shareholders may raise concerns when major shareholders coordinate to influence board control, especially if such actions could trigger tender offer or merger control obligations. Companies often respond by seeking further information on shareholder relationships and potential conflicts before proceeding. Why the Director Removal Failed Under Section 76 of the Public Limited Companies Act B.E. 2535 (as amended), the early removal of a director requires two conditions to be satisfied at the same meeting of shareholders: Headcount test: At least 75% of shareholders attending and entitled to vote must vote in favor. If multiple shareholders appoint the same person as proxy, each proxy is counted as a separate head for the purpose of the headcount test,
Read More
October 24, 2025
Thailand currently lacks a specific franchise act. Consequently, the legality of any franchise agreement is determined by its compliance with various existing laws, such as the Civil and Commercial Code, the Trademark Act B.E. 2534 (1991) (as amended), and the Unfair Contract Terms Act B.E. 2530 (1997). Thailand is a freedom-to-contract jurisdiction. This allows for a high degree of flexibility and autonomy in contractual arrangements, provided that the terms do not violate any laws or public policy and do not fall under the scope of unfair contract terms. Given this, the requirement for fairness in franchise agreement terms often leads to uncertainty, but decisions from the Trade Competition Commission of Thailand (TCCT) can provide guidance on whether specific contentious terms are in fact fair.  One issue worth examining in this light is the inclusion of terms on nonrefundable franchise fees and strict purchasing conditions. Franchise Fee: Unfair to Refuse Refund? Nonrefundable franchise fees represent a significant upfront investment for franchisees, often becoming a point of contention if the franchise relationship deteriorates or the franchisor ceases operations. Their fairness and enforceability are frequently scrutinized by regulatory bodies like the TCCT, highlighting the critical balance between contractual freedom and franchisee protection. Faced with one such case, the TCCT considered whether it was unfair for the franchisor to refuse to refund the franchise fee after the franchisor ceased operations.  The franchisee had entered into a service agreement on August 2, 2021, and begun operating on October 9, 2021. However, by November 21, 2023, the franchisee was notified that the system would be shut down for maintenance, and by December 26, 2023, the franchisor announced the cessation of operations due to financial losses. The franchisee then requested a refund of the franchise fee. Unfortunately for the franchisee, the TCCT found that the franchisor’s
Read More
October 24, 2025
On October 22, 2025, the Thai government posted a directive not to grant gambling licenses for gambling involving poker nationwide to crack down on illegal gambling activities. The directive was issued by Thailand’s Ministry of Interior to align with government policies to prevent the legalization of all types of gambling businesses, including poker as a sporting activity. This will result in the revocation of poker activities as sport and institute a strict ban on such activities nationwide. Businesses should note the new government’s strict approach toward gambling activities as the legal situation regarding gambling in the country continues to draw close attention.
Read More