Thailand’s Draft Royal Decree on the Supervision of Digital Platform Services Approved in Principle by the Cabinet

On 25 October 2021, the Cabinet approved in principle the draft Royal Decree on the Supervision of Digital Platform Services Subject to Prior Notification (“Digital Platform Decree”).

The draft Digital Platform Decree (“Decree”) is to be issued under the authority of the Electronic Transactions Act B.E. 2544 (2001). The Decree is mainly for supervision of the digital platform service operators in order to protect consumers and the general public, enhance the credibility and transparency of digital platforms, and maintain the financial and commercial stability of Thailand. It will be administered by the Electronic Transactions Development Agency (“ETDA”) of the Ministry of Digital Economy and Society.

Under the current draft Decree, “digital platform services” refers to services in the nature of any intermediary digital platform that provides a space for connection between business operators on a digital platform, and consumers via a computer network. The Decree is applicable to digital platform service providers who provide services to consumers in Thailand, regardless of where the service providers are located.

Where the Decree is applied, a business operator who intends to provide digital platform services must notify the ETDA of their operation via an electronic channel before providing such services in Thailand, except for digital platform services which are already regulated by other specific government authorities or fall under the notification exemption list as prescribed by the Electronic Transactions Commission.

For a digital platform service provider located outside Thailand but subject to the Decree, such service provider is required to appoint a local representative in Thailand without limitation of liability

The draft Digital Platform Decree also empowers the ETDA to require some types of digital platform service providers to notify platform users of certain details of their services before or at the time of providing such services. This may include conditions for the provision of services, suspension or cessation of services, service fees, remuneration and other service expenses.

The Decree authorises the ETDA to request other government agencies for disclosure or access to necessary information in relation to a digital platform service provider that has been collected or obtained from the service provider by other government agencies, pursuant to the relevant law or contractual terms.

In case a digital platform service provider wishes to cease their operation in Thailand, it shall notify the ETDA of their closure not less than 60 days prior to cessation of operation. Moreover, if a digital platform service provider fails to comply with the Decree, the ETDA can order it to temporarily cease its operation until it has fully complied with the Decree and order such service provider to correct its actions within 90 days; otherwise, the ETDA would remove it from the digital platform service register.

The draft Digital Platform Decree will be forwarded to the Council of State for further review before the Cabinet considers the draft in detail again. Upon final approval by the Cabinet, the Royal Decree will be published in the Government Gazette and will become effective after 180 days from the publication date.

              This article is prepared by Pavinee Bunyamissara, Paramee Kerativitayanan