Key Developments in Thailand’s Trade Competition Law in 2025: Q1 Review

Since the public hearing on the three draft Trade Competition bills held at the Thai Parliament in December 2024, there has been increased interest in and discussion of Thailand’s Trade Competition law. A summary of the noteworthy movements in this area that occurred during the first quarter of 2025 is as follows:

The Secretary-General of the Competition Commission of Thailand (“TCCT”) has forecasted that the services and industrial sectors will remain prominent in terms of business integration. This assertion is supported by statistical data reflecting the business integration trends in Thailand. The statistical data for the years 2023-2024 indicate that the number and value of business combinations in these sectors rank among the highest in the industry classification. Within the transportation and logistics sector, the service industry is characterized by a diverse array of participants, including major transportation companies, online platform providers, and prominent online retailers in the parcel delivery market. During peak hours and for short-distance transportation, the market is becoming increasingly complex and competitive, due to the high degree of similarity in the services offered by various providers. This heightened competition primarily results in a price-driven market environment. Consequently, the TCCT will concentrate specifically on these business sectors and will monitor and investigate business combinations that might violate legal regulations relating to trade competition.
In accordance with the resolutions made during the Meeting of the Committee on the Management and Resolution of Issues of Foreign Goods and Businesses in Violation of the Law No. 3 (1/2025), it has been determined that the TCCT will participate in the Working Group dedicated to the suppression of foreign goods and business practices that violate legal standards. The TCCT is tasked with directing, supervising, coordinating, and conducting audits of the operations of government departments, in conjunction with relevant agencies and organizations. This collaborative effort seeks to achieve tangible outcomes when addressing concerns related to substandard foreign products and through the implementation of measures to prevent and deter covert business activities by foreign entities (Nominee). The use of competition measures in trade is essential to address the spillover of goods and services originating from abroad, and focuses on two primary strategies:
(1) When foreign business operators establish production facilities in Thailand, resulting in lower costs of goods and services, domestic operators may struggle to compete. The TCCT, in collaboration with the Office of the Board of Investment (BOI), will implement investment promotion measures designed to sustain competition without adverse effects on domestic enterprises.

(2) When business operators import low-cost and substandard products from China, the market dynamics are distorted, impairing the competitiveness of domestic businesses. The TCCT will establish measures to prevent and address commercial conduct that may violate the Competition Law. This conduct may include predatory pricing, sales below cost, coercive sales promotion activities, and collusive price agreements among competitors or business partners. The TCCT also will enforce regulations governing domestic business operators that engage in legal relationships with foreign entities that use or result in monopolistic or restrictive trade practices that are detrimental to the economy and consumer interests at large.
This year, the TCCT is committed to enhancing cooperation in the regulation of trade competition. This will be accomplished through formulation of Memoranda of Understanding (MOUs) with international organizations and agencies such as the Philippine Competition Commission and the Australian Competition & Consumer Commission, in order to improve the efficiency of trade competition oversight and align it with established international standards.
The Nomination Committee for Nominating Candidates for Commission of the Trade Competition Commission has performed a review of qualified candidates to fill three positions within the Trade Competition Commission. The Committee currently is preparing to propose a list of selected candidates to the Minister of Commerce, which will be presented to the Cabinet for approval, which will be given within 15 days of the Cabinet receiving the nominations from the Committee; thereafter, the nominations will be submitted to the Prime Minister for formal appointment. The names of the three individual nominees have not been made publicly available.
The TCCT is holding public hearings on the regulatory impact assessment of all announcements associated with the Trade Competition Act B.E. 2560 (2017) through April 23, 2023. The purpose of these hearings is to evaluate whether these announcements are essential, impose unreasonable restrictions on the rights or freedoms of individuals, create burdens on or obstacles to the livelihoods or occupations of the populace, conflict with international principles or obligations, or should be amended or revoked. The outcome of this assessment will inform revisions to the Trade Competition Act; those proposed revisions are expected to undergo formal public hearings sometime this year.

This article is intended merely to provide a regulatory overview, is not comprehensive, and is not intended to constitute legal advice. Should you have any questions on this or on any other areas of law, please do not hesitate to contact:

Siriwan Nopareporn
Attorney-at-Law