Thailand’s Trade Competition Act. LECTURE II OCTOBER 26 TH , 2009 Dr. C. Gastle & Murdoch Martyn. Trade Competition Act. Trade Competition Act enacted in 1999; Almost no cases available interpreting the provisions; Apart from statute, analysis based on secondary sources;
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OCTOBER 26TH, 2009
Dr. C. Gastle & Murdoch Martyn
A business operator having market domination shall not;
(1). Unreasonably fix or maintain prices;
(2). Unreasonably fix conditions of sale, restrict services, production, purchase or distribution of goods/services or securing credit for business operators;
(3). Suspend, reduce, restrict services, production, purchase, distribution or import “without justifiable reasons,” destroy or cause damage to reduce quality below lower demand;
(4). Intervening in the operation of business of other persons without justifiable reasons.
Any business operator shall not enter into an agreement with another business operator to do any act amounting to monopoly, reduction of competition or restriction of competition … in any of the following manners:
1). fixing selling prices of goods or services as single price or as agreed or restrict the sale volume of goods or services;
2). fixing buying prices of goods or services as single price or as agreed or restrict the purchase volume of goods or services;
3). entering into an agreement to have market domination or control;
4). fixing an agreement or condition in a collusive manner in order to enable one party to win a bid or tender …
5). fixing geographical areas for distribution or fix customers to exclusion of other businesses in competition;
6). fixing geographical areas or fixing persons businesses may purchase from;
7). fixing the quantities which each business operator may manufacture, purchase, distribute, to restricting the quantity below market demand;
8). reducing quality below that of previous levels;
9). appointing a sole distributor; and
10). fixing conditions of sale to ensure the uniform or agreed practice.
Permission can be obtained from TCC for (5) through (10) if “commercially necessary.”
These are broad categories but there is no basket clause.
Article 29 is a catchall.
“A business operator shall not carry out any act which is not free and fair competition and has the effect of destroying, impairing, obstructing, impeding or restricting business operation of other business operators or preventing other persons from carrying out business or causing their cessation of business.”