WORLD TRADE
ORGANIZATIONWT/WGTCP/W/150
19 December 2000
(00-5523)
Working Group on the Interaction
between Trade and Competition PolicyOriginal:  English
COMMUNICATION FROM THAILAND
The following communication, dated 11 September 2000, has been received from the
Permanent Mission of Thailand with the request that it be circulated to Members.
_______________
Competition Law of Thailand
Development of Thailand's Competition Law
1. The development of competition law in Thailand began with the enactment of the  Anti-
Profiteering Act in 1947 .  This law was not aimed at prohibiting monopoly or anti-competition
behaviours, but was basically intended to protect  consumers from excessive pricing.  However, when
Thailand's economy substantially expanded later on, the government realized that the 1947 Anti-
Profiteering Act could not protect consumers from unfair trade practices and rapid price increases.
Hence, the  Price Fixing and Anti-Monopoly Act of 1979  was enacted to replace the Anti-
Profiteering Act.
2. The 1979 Act consists of two parts:  the pri ce fixing part and the anti-monopoly part.  The
price fixing part of the 1979 Act  is aimed at protecting consumers from excessive pricing.  It
empowers "the Central Committee on Price Fixing and Anti-Monopoly", which comprises
representatives from public and private sectors, to monitor the price movement of goods and services
and to impose maximum selling price controls on certain products.
3. Products which were listed in the price control announcement under the 1979 Act were
essential consumer goods and commodities with irregular price movements such as pork, refinedsugar, cooking gas and instant coffee.  If manufacturers wished to raise prices of these controlled
products, they had to seek approval from the Central Committee by providing the cost estimates of
such controlled products.
4. The anti-monopoly part of the 1979 Act is aimed at promoting fair competition.  It empowers
the Central Committee to observe all business conducts, in order to prevent entrepreneurs from sellingproducts above the controlled prices, creating monopolies and conducting restrictive business
practices.  If violations are found, the Central Committee has the power to refer them to the criminal
court. However, the provisions relating to monopoly and restrictive business practices have rarely
been invoked and the Act has mainly been used to combat unfair retail pricing of consumer products.
5. A major step towards reinforcing competit ion law in Thailand arose when the Thai
Constitution was amended in 1997.  Section 87 of the Constitution stated that "the Government mustWT/WGTCP/W/150
Page 2
support an economic system based on the free market; it has to ensure fair competition, provide
consumer protection, and combat monopoly practices  ... ".  According to the amended Constitution,
the old "1979 Price Fixing and Anti-Monopoly Act" cannot provide proper protection for consumers
and small businesses from monopoly and restrictive business practices, especially with the
privatization process presently being undertaken.  Hence, the Price Fixing and Anti-Monopoly Act of1979 was replaced by two separate Acts: the Price of Goods and Services Act , which entered into
force on 1 April 1999; and the Business Competition Act , which entered into force on 30 April 1999.
6. The Price of Goods and Services Act of B.E. 2542 (1999)  prohibits price manipulation of
goods and services.  The Act establishes the "Central Committee on Prices of Goods and Services" to
monitor transactions and actions related to controlled goods and services.  Subject to Cabinet
approval, the Central Committee has the power to  introduce minimum purchasing prices, maximum
selling prices or other measures in order to prevent price manipulation and unfair business practices.
The Business Competition Act of 1999
Objective of the Act
7. The Business Competition Act of B.E. 2542 (1999)1 came into effect on 30 April 1999.  The
objective of the Business Competition Act of 1999 is to encourage and to promote free and fair
business practices.  This is based on the view that competitive markets are the best way to promote
economic efficiency and effective resources allocation, to encourage new entrants, especially small
and medium enterprises, as well as to maximize economic and social welfare.  Consequently,
consumers will benefit from fair and efficient pricing and more choices and better quality of goodsand services.
Anti-Competitive Behaviours under the Act
8. Under the Act, anti-competitive behaviours have been defined and divided into three main
categories:  the abuse of market domination, merger and other anti-competitive conducts.
(i) The Abuse of Market Domination
9. The abuse of market domination part of the Act is adopted to protect competitors, suppliers,
buyers and consumers against business operators having the power over the market and exploiting
their power to distort competition, and taking advantage of and influencing other business operators.
It focuses mainly on the conduct of large businesses with dominant market position rather than small
and medium-sized enterprises.
10. Section 2  of the Act defines a Business Operator2 with Market Domination as one or more
business operators in the market of any goods or services who have the market share and sales volume
above the level prescribed by the Competition Commission.
11. Section 25  prohibits a business operator with market domination  from conducting any of the
following acts:
(1) unreasonably fixing or maintaining purchasing or selling prices of goods or fees for
services;
                                                     
1 Attached in English only.
2 "Business Operator" means a distributor, producer for distribution, procurer or importer into the
Kingdom for distribution or purchaser for production or redistribution of goods, or provider of services in the
business.WT/WGTCP/W/150
Page 3
(2) unreasonably fixing compulsory conditions requiring his or her customers to restrict
services, production, purchase or distribution of goods, or restrict opportunities in
purchasing or selling goods or providing services or obtaining credits from other
business operators;
(3) suspending, reducing or restricting services, production, purchase, distribution,
deliveries or importation without justifiable reasons, or destroying or causing damage
to goods in order to reduce the quantity to be lower than market demand;
(4) intervening in operation of business of other person without justifiable reasons.
12. Section 30  of the Act empowers the Competition Commission to issue a written order
requiring a business operator who has market domination, with the market share of more than seventy
five percent, to suspend, cease or change its market share.
(ii) Merger
13. The merger part of the Act is adopted to prohibit mergers that may lead to monopoly or unfair
competition. The Act does not prohibit mergers per se , but subjects mergers that may reduce
competition to prior approval from the Competition Commission.
14. Under Section 26 , a business operator shall not carry out a business merger3 which has the
amount of market share, sale volume, capital, stocks or assets in excess of those specified in theGovernment Gazette by the Competition Commission as it may result in creating monopoly or unfair
competition.  Nevertheless, a merger may proceed if the Competition Commission grants approval.
(iii) Other Anti-Competitive Conducts
15. The anti-competitive part of the Act is adopted to prohibit a business operator from
conspiring, colluding or collaborating with anot her business operator, which result in creating
monopoly or reducing competition.
16. Under Section 27 , a business operator is prohibited from entering into an agreement with
another business operator with a view to conducting an act which creates monopoly, reduces
competition or restricts competition in the market of any goods or services in any of the following
manners:
(1) fixing selling price of goods or services as a single price or restricting the sale volume
of goods or services;
(2) fixing buying price of goods or services as a single price or restricting the purchase
volume of goods or services;
                                                     
3 A business merger is defined in the Act as:
1) a merger made by  a producer with another producer, by a distributor with another
distributor, by a producer with a distributor, or by a service provider with another service
provider, which has the effect of maintaining the status of one business and terminating
the status of the other business or creating new business;
2) a purchase of the whole or part of assets of another business with a view to controlling
business administration policies, administration and management;
3) the purchase of the whole or part of shares of another business with a view to controlling
business administration policies, administration and management.WT/WGTCP/W/150
Page 4
(3) entering into an agreement to take over or control the market;
(4) fixing an agreement or condition in a co llusive manner in order to enable a party to
win a bid or a tender for goods or services, or in order to prevent a party from
participating in a bid or tender for goods or services;
(5) fixing geographical areas in which each business operator may distribute or restrict
the distribution of goods or services, or fixing customers to whom each business
operator may sell goods or provide services to the exclusion of other business
operators from competing in the distribution of such goods or services;
(6) fixing geographical area in which each business operator may purchase goods or
services or fixing persons from whom business operators may purchase goods or
services;
(7) fixing the quantity of goods or services in which each business operator may produce,
purchase, distribute or provide with a view to restricting the quantity to be lower than
the market demand;
(8) reducing the quality of goods or services to a level lower than that in the previous
production, distribution or provision, whether the distribution is made at the same or
at a higher price;
(9) appointing or entrusting any person as a sole distributor or provider of the same
goods or services;
(10) fixing conditions or practices with regard to the purchase or distribution of goods or
the provision of services in order to achieve the uniform or agreed practice.
In the case where it is commercially necessary that any act under Section 27 (5–10) be undertaken, the
business operator shall seek prior approval from the Competition Commission.
17. Hence, in order to violate Section 27, three conditions must be fulfilled: (a) two or more
business operators must enter into an agreement; (b ) this agreement must result in an act amounting to
monopoly, reducing or restricting competition; and (c) the act must fall under the manners (1) to (10).
18. In addition, the Act also deals with exclusive dealing agreements between domestic and
overseas business operators.  Section 28 prohibits a business operator who has a business relationship,
whether by contract, policy, partnership, or any other relationship of like nature, with a business
operator outside the Kingdom from performing an activity which will restrict the freedom or
opportunity of a person residing in the Kingdom from purchasing goods or services for his/ her own
use directly from business operators outside the Kingdom.  This part of the Act is also adopted to
safeguard the consumers' right to buy directly from a manufacturer or distributors located outsideThailand, provided that the purchase is for personal consumption.
19. Moreover, in order to prevent any other anti-competitive behaviours, which may not be
covered by the above provisions, Section 29  is adopted to prohibit a business operator from
performing any acts which are not free and fair competition and which result in destroying, impairing,
obstructing or impeding business operation of other business operators or preventing other personsfrom operating their business or causing the dissolution of their businesses.WT/WGTCP/W/150
Page 5
Exemption
20. The 1999 Act does not apply to the act of:  central, provincial and local administration; state
enterprises; groups of farmers, co-operatives or co-operative societies recognized by law that their
businesses are operated for the benefit of the farmers; and businesses prescribed under the MinisterialRegulation.
21. Furthermore, while anti-competitive behaviours under Section 25,  27 (1-4), 28 and 29 are
strictly prohibited, some practices under Section 26 and 27 (5-10) may be undertaken with prior
approval from the Competition Commission.  In this case, the Competition Commission shall render
its decision in writing within 90 days.
Penalties
22. In the case where the Competition Commission considers that a business operator violates
Section 25, 26, 27, 28 or 29, the Commission shall have the power to issue a written order requiring
the business operator to suspend, cease, rectify or vary such act.  However, the business operator, who
receives the order and disagrees, is also given opportunity to appeal such decisions to the "Appellate
Committee".4
23. Any person who violates Section 25, 26, 27 , 28 or 29, or fails to comply with the order of the
Competition Commission, or with the decision of the Appellate Committee shall be liable to
imprisonment for a term not exceeding three years and/or to a fine not exceeding six million Baht.
These penalties may apply not only to the enterprises but also to their managing director, managing
partner or person responsible for the operation of the business unless it is proved that such offence iscommitted without his/her knowledge or consent or he/she has already taken reasonable action to
prevent such offence from occurring.
24. In addition, the Act also allows any person suffering an injury in the consequence of the
violation of Section 25, 26, 27, 28 or 29 to initiate an action for claiming compensation from the
violator.
Enforcement Body
25. The "Competition Commission" which consists of the Minister of Commerce as Chairman;
the Permanent-Secretary of the Ministry of Commer ce as Vice-Chairman; the Director-General of the
Department of Internal Trade as Member and Secretary; and the Permanent-Secretary of the Ministry
of Finance; and no more than twelve other qualified persons as Members shall be responsible for the
enforcement of the Act.
26. In addition, these qualified persons appointed as Members must not be political officials,
holders of political positions, executive members or holders of positions with the responsibility in the
administration of political parties.  They shall hold office for a term of two years and not more than
two consecutive terms in case they are re-appointed.
                                                     
4  "The Appellate Committee" shall consist of not more than seven qualified persons with knowledge
and experience in law, economics, business administration or public administration appointed by the Council ofMinisters.  This qualified person must not be a political  official, holder of a political position, executive member
or holder of a position with the responsibility in the admi nistration of a political party.  He/she shall hold office
for a term of four years.WT/WGTCP/W/150
Page 6
Conclusion
27. It is hoped that the 1999 Business Competition Act will serve to protect both consumers and
producers against restrictive and market distorting practices and to create a fairer and more liberal
trade and investment climate within the Thai economy.  In addition, this Act, together with the marketreforms and restructuring scheme, is expected to render greater transparency and predictability in
conducting businesses in Thailand.
_______________WT/WGTCP/W/150
Page 7
Tentative Translation∗∗∗
COMPETITION ACT
B.E. 2542 (1999)
_______________
Bhumibol Adulyadej, Rex.,
Given on the 22nd Day of March B.E. 2542;
Being the 54th Year of the Present Reign.
His Majesty King Bhumibol Adulyadej is graciously pleased to proclaim that:
Whereas it is expedient to have a law on competition by revising the rules relating to anti-
monopoly provided in the law on price fixing and anti-monopoly:
Whereas it is aware that this Act contains certain provisions in relation to the restriction of
rights and liberties of persons, in respect of which section 29, in conjunction with section 31,
section 35, section 36, section 45, section 48 and section 50 of the Constitution of the kingdom of
Thailand so permit by virtue of the provisions law;
Be it, therefore, enacted by the King, by and with the advice and consent of the National
Assembly, as follows:
Section 1.  The Act is called the "Competition Act, B.E. 2542 (1999)".
Section 2.  This Act shall come into force after thirty  days as from the date of its publication
in the Government Gazette. ∗∗
Section 3.  In this Act:
"business" means an undertaking in agriculture, industry, commerce, finance, insurance, and
services and shall include other undertakings prescribed by Ministerial Regulations;
"finance" means commercial banking under th e law on commercial banking, finance and
credit foncier businesses under the law on operation of finance, securities and credit foncierbusinesses, and securities business under the law on securities and securities exchange;
"business operator" means a distributor, producer for distribution, orderer or importer into the
Kingdom for distribution or purchaser for production or redistribution of goods or a service provider
in the course of business;
                                                     
∗∗∗ COPYRIGHT NOTICE:  This tentative translation is the original work of Dr. Pinai Nanakorn
(Juridical Official of the Foreign Law Division of the Office of the Council of State) and is prepared in the
author's personal capacity.  The author thus has full copyrights in the work.  The author authorises theDepartment of Internal Trade to use this work for any non-commercial purposes.
∗∗ Published in Government Gazette, Vol. 116. Part 22b, dated 31st March 1999.WT/WGTCP/W/150
Page 8
"goods" means an article capable of utilisation or consumption, including a document of title
to an article;
"service" means the procurement of work by way of commission, the granting of any right or
the giving of permission to use or to have benefits in any property or any undertaking in return formonetary remuneration or other benefit but shall not include the hire or service;
"price" means a price of goods and shall also include remuneration for the performance of a
service;
"business operator with market domination" means one or more business operators in the
market of any goods or service who have the market share and sales volume above that prescribed bythe Commission with the approval of the Council of Ministers and published in the Government
Gazette, having regard to the market competition;
"Commission" means the Competition Commission;
"member" means a member of the Competition Commission;
"Secretary-General" means the Secretary-General of the Competition Commission;"competent official" means a Government official appointed by the Minister to perform
activities under this Act;
"Minister" means the Minister having charge and control of the execution of this Act.Section 4.  This Act shall not apply to the act of:
(1) Central administration, provincial administration or local administration;(2) State enterprises under the law on budgetary procedure;(3) Farmers' groups, co-operatives or co-operative societies recognised by law and
having as their object the operation of businesses for the benefit of the occupation of farmers;
(4) Businesses prescribed by the Ministerial Regulation, which may provide for
exemption from the application of this Act in whole or only in respect of any particular provision
thereof.
Section 5.  The Minister of Commerce shall have charge and control of the execution of this
Act, provided that in respect of financial undertakings, the Minister of Commerce and the Minister of
Finance shall jointly have charge and control, and shall have the power to appoint competent officials,
issue Ministerial Regulations for the execution of this Act and issue Notifications hereunder.
Such Ministerial Regulations and Notifications shall come into force upon their publication in
the Government Gazette.WT/WGTCP/W/150
Page 9
CHAPTER I
Competition Commission
_______________
Section 6.  There shall be the Competition Commission consisting of the Minister of
Commerce as Chairman, Permanent-Secretary for the Minister of Commerce as Vice-Chairman,
Permanent-Secretary for the Ministry of Finance and not less than eight, but not more than twelve,
qualified persons with knowledge and experience in law, economics, commerce, business
administration or public administration appointed by the Council of Ministers, provided that at least
one-half of whom must be appointed from qualified members in the private sector, as members andthe Secretary-General shall be a member and secretary.
The appointment of the qualified persons under paragraph one shall be in accordance with the
rules and procedure prescribed in the Ministerial Regulation.
Section 7.  A qualified person appointed as member must  not be a political official, holder of
a political position, executive member or holder of a position with the responsibility in the
administration of a political party.
Section 8.  The Commission shall have the powers and duties as follows:
(1) to make recommendations tot he Minister with regard to the issuance of Ministerial
Regulations under this Act;
(2) to issue Notifications prescribing market share and sales volume of any business by
reference to which a business operator is deemed to have market domination;
(3) to consider complaints under section 18 (5);
(4) to prescribe rules concerning the collection and the taking of goods as samples for the
purposes of examination or analysis under section 19 (3);
(5) to issue Notifications prescribing the market share, sales volume, amount of capital,
number of shares, or amount of assets under section 26 paragraph two;
(6) to give orders under section 30 and section 31 for the suspension, cessation,
correction or variation of activities by business operators;
(7) to issue Notifications prescribing the form rules, procedure and conditions for the
application for permission to merge businesses or initiate the joint reduction or restriction of
competition under section 35;
(8) to consider an application for permission to merge businesses or initiate the joint
reduction or restriction of competition submitted under section 35;
(9) to invite any particular person to give facts, explanations, advice or opinions;
(10) to monitor and accelerate an inquiry sub-committee's conduct of an inquiry of
offences under this Act;WT/WGTCP/W/150
Page 10
(11) to prescribe rules for the performance of work of the competent officials for the
purpose of the execution of this Act;
(12) to perform other acts provided by the law to be the powers and duties of the
Commission;
(13) to consider taking criminal proceedings as requested in the complaint lodged by the
injured person under section 55.
Section 9.  The qualified member under section 6 shall hold office for a term of two years.
At the expiration of the term under paragraph one, if a new qualified member is not yet
appointed, the qualified member who vacates office at the expiration of the term shall continue to hold
office for the purpose of the performance of work until a newly appointed qualified member takes
office.
The qualified member who vacates office at the expiration of the term may be re-appointed
but may not serve for more than two consecutive terms.
Section 10.  The provisions of section 75, section 76, section 77, section 78, section 79,
section 80, section 81, section 82 and 83 of the Ad ministrative Procedure Act, B.E. 2539 (1996) shall
apply to the appointment of a qualified member, the vacation of office of a qualified member and a
meeting of qualified members mutatis mutandis , and a qualified member shall also vacate office upon
being under the prohibitions under section 7.
Section 11.  The Commission may appoint a sub-committee to consider and make
recommendations on any matter or perform any act as entrusted and prepare a report thereon for
submission to the Commission.
Section 12.  The Commission shall appoint one or more specialised sub-committees
consisting of, for each sub-committee, not less than four and not more than six persons qualified in the
matter concerned and having knowledge and experience in various fields such as law, science,
engineering, pharmacology, agriculture, economics, commerce, accountancy, or business
administration as members, with the representative of the Department of Internal Trade as a member
and secretary.
The specialised sub-committee shall elect one member as Chairman.
Section 13.  The specialised sub-committee has the duty to consider and give opinions to the
Commission on the following matters, as entrusted by the Commission:
(1) the matter concerning the conduct indicative of market domination, a merger of
businesses, the reduction or restriction of competition under section 25, section 26, section 27, section
28 and section 29;
(2) the consideration of an application for permission to merge businesses or initiate the
reduction or restriction of competition under section 37;
(3) other matters to be considered at the request of the Commission and other acts to be
performed as entrusted by the Commission.
For the purpose of this Act, a specialised sub-committee may submit opinions or
recommendations to the Commission with regard to the execution of this Act.WT/WGTCP/W/150
Page 11
In carrying out the acts under paragraph one, the specialized sub-committee shall have the
power to issue a written summons requiring the pe rsons concerned to give statements or furnish
documents or any other evidence for supplementing its consideration.
Section 14.  The Commission shall appoint one or more inquiry sub-committees consisting
of, for each sub-committee, one person possessing knowledge and experience in criminal cases who isappointed for police officials, public prosecutors and, in addition, not more than four persons
possessing knowledge and experience in economics, law, commerce, agriculture, or accountancy, as
members, with the representative of the Department of Internal Trade as a member and secretary.
The inquiry sub-committee shall have the power and duty to conduct an investigation and
inquiry in connection with the commission of offences under this Act and, upon completion thereof,
submit opinions to the Commission for further consideration.
The inquiry sub-committee shall elect one member as Chairman.Section 15.  In the performance of the duties under this Act, a member of the Commission
and a member of an inquiry sub-committee under section 14 shall have the same powers and duties as
an inquiry official under the Criminal Procedure Code.
Section 16.  In the case where the Commission submits to the public prosecutor the opinion
for prosecution, an objection to the public prosecutor's non-prosecution order under the CriminalProcedure Code shall be the power to be exercised by the Chairman of the Commission in place of the
Commissioner-General of the Royal Thai Police Force or the Changwad Governor as the case may
be.
Section 17.  The provisions of section 9 and section 10 shall apply mutatis mutandis  to the
sub-committee, specialised sub-committee and inquiry sub-committee.
CHAPTER II
Office of the Competition Commission
_______________
Section 18.  There shall be established the Office of the Competition Commission in the
Department of Internal Trade, Ministry of Commer ce, with the Director-General of the Department of
Internal Trade as the Secretary-General, who shall be the superior official responsible for the official
affairs of the Office, with the powers and duties as follows:
(1) to carry out administrative tasks of the Commission, the Appellate Committee and
sub-committees appointed by the Commission;
(2) to prescribe regulations for the purpose of the work performance of the Office of the
Competition Commission;
(3) to monitor the movement and oversee the conduct of business operators and report
the same to the Commission;
(4) to conduct studies, analyses and research in relation to goods, services, and business
conduct and make recommendations and give opinions to the Commission on the prevention ofmarket domination, merger of businesses and reduction and restriction of competition in the operation
of businesses;WT/WGTCP/W/150
Page 12
(5) to receive complaints by which it is alleged by any person that violation of this Act
has occurred and to carry out its preliminary consideration for submission to the Commission, in
accordance with the regulations prescribed and published in the Government Gazette by the
Commission;
(6) to co-ordinate with Government agencies or agencies concerned, for the purpose of
the performance of duties under this Act;
(7) to perform the acts in the implementation of Notifications, regulations and resolutions
of the Commission and perform such acts as entrusted by the Commission, the Appellate Committee
or be sub-committee appointed by the Commission.
Section 19.  In the execution of this Act, the competent official shall have the following
powers;
(1) to issue a written summons requiring any person to give statements, facts or written
explanations or furnish accounts, records, documents or any evidence for examination orsupplementing his consideration;
(2) to enter the place of business, place of production, place of distribution, place of
purchase, warehouse or place of service of the business operator or of any person or other place
reasonably suspected to have therein a violation of the provisions of this Act, for the purpose of
examining the conformity with this Act or for sear ching and seizing evidence or property which may
be confiscated under this Act or arresting the offender under this Act without a warrant of search in
the following cases:
(a) where a flagrant offence is evidently being committed in the place;
(b) where a person having committed a flagrant offence has, while being pursued, taken
refuge, or there are serious grounds for suspecting that such person is concealing, in the place;
(c) where there are reasonable grounds for suspecting that the evidence or property which
may be confiscated under this Act is found in the place and there are reasonable grounds to believe
that by reason of delay in obtaining a warrant of search the evidence or property is likely to be
removed, concealed, destroyed or transformed from its original state;
(d) where the person to be arrested is the owner of the place and there is a warrant for
such arrest or such arrest may be made without a warrant;
Provided that, for these purposes, the competent official has the power to inquire into facts or
summon accounts, records, documents or other evidence from the business operator or from the
person concerned or order such persons who are in such a place to perform necessary acts;
(3) to collect or take goods, in a reasonable quantity, as samples for an examination or
analysis without payment of the prices of such goods, in accordance with the rules prescribed by the
Commission in the Government Gazette;
(4) to attach documents, accounts, records or  evidence for the purpose of examination
and taking legal proceedings under this Act.
Section 20.  In the performance of duties of the competent official, a person concerned shall
render reasonable assistance.WT/WGTCP/W/150
Page 13
Section 21.  In the performance of duties, the competent official shall produce an
identification card to the persons concerned.
The identification card shall be in accordance with  the form prescribed by the Minister in the
Government Gazette.
Section 22.  The competent official shall procure service of the written summons under
section 13 paragraph 3, section 19(1) or section 44(3) by directing it at the domicile or the place of
business of the person named in the summons between sunrise and sunset or during working hours of
such person or may send it by registered post requiring acknowledgement of receipt thereof.
In the case where the competent official serves the summons under paragraph one but the
person named in the summons refuses to accept it without reasonable cause, the competent official
shall request the administrative or police official to accompany the competent official for the purpose
of leaving the summon on the spot.  If the competent official does not meet the person named in thesummons at his or her domicile or place of business, the summons may be served on any sui juris
person who is living or working in that dwelling-place or place of business.  If nobody is met or
nobody agrees to accept the summons on behalf of the person named therein, such summons shall be
posted in a conspicuous placed at the domicile or the place of business in the presence of the
administrative or police official who accompanies as witness.
When the competent official has carried out the act under paragraph one or paragraph two, it
shall be deemed that the person named in the summons has received it.  In the case of the posting of
the summons, it shall be deemed that such summons is received upon the lapse of five days as from
the date of its posting.  If the service is made by a registered post requiring acknowledgement of its
receipt, it shall be deemed that the summons is received upon the lapse of five days as from the dateof its receipt.
Section 23.  In the execution of this Act, members, members of the Appellate Committee or
of the sub-committee, Secretary-General, and competent officials shall be the officials under the Penal
Code.
Section 24.  For the purpose of arresting offenders under this Act, the competent official shall
have the same powers as the administrative or police officer under the Criminal Procedure Code.
An arrest of the offender may be made without a warrant of arrest when a flagrant offence is
evidently being committed or when there is any other circumstance under which the Criminal
Procedure Code permits the administrative or police official to make an arrest without a warrant of
arrest.
CHAPTER III
Anti-Monopoly
_______________
Section 25.  A business operator having market domination shall not act in any of the
following manners:
(1) unreasonably fixing or maintaining purchasing or selling prices of goods or fees for
services;WT/WGTCP/W/150
Page 14
(2) unreasonably fixing compulsory conditions, directly or indirectly, requiring other
business operators who are his or her customers to restrict services, production, purchase or
distribution of goods, or restrict opportunities in purchasing or selling goods, receiving or providing
services or obtaining credits from other business operators;
(3) suspending, reducing or restricting services, production, purchase, distribution,
deliveries or importation without justifiable reasons, or destroying or causing damage to goods in
order to reduce the quantity to be lower than the market demand;
(4) intervening in the operation of business of other persons without justifiable reasons.
Section 26.  A business operator shall not carry out a business merger which may result in
monopoly or unfair competition as prescribed and published in the Government Gazette by the
Commission unless the Commissi on's permission is obtained.
The publication by the Commission under paragraph one shall specify the minimum amount
or number of market share, sale volume, capital, shares or assets in respect of which the merger of
business is governed thereby.
The merger of business under paragraph one shall include:
(1) a merger made by a producer with another producer, by a distributor with another
distributor, by a producer with a distributor, or by a service provider with another service provider,
which has the effect of maintaining the status of one business and terminating the status of the other
business or creating a new business;
(2) a purchase of the whole or part of assets of another business with a view to
controlling business administration policies, administration and management;
(3) a purchase of the whole or part of shares of another business with a view to
controlling business administration policies, administration and management.
The application by a business operator for the permission under paragraph one shall be
submitted to the Commission under section 35.
Section 27.  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 competitionin the market of any particular goods or any particular service in any of the following manners:
(1) fixing selling prices of goods or services as a single price or as agreed or restricting
the sale volume of goods or services;
(2) fixing buying prices of goods or services as a single price or as agreed or restricting
the purchase volume of goods or services;
(3) entering into an agreement with a view to having market domination or market
control;
(4) fixing an agreement or condition in a collusive manner in order to enable one party to
win a bid or a tender for the goods or services or in order to prevent one party from participating in a
bid or a tender for the goods or services;WT/WGTCP/W/150
Page 15
(5) fixing geographical areas in which each business operator may distribute or restrict
the distribution of goods or services, or fixing customers to whom each business operator may sell
goods or provide services to the exclusion of other business operators from competing in the
distribution of such goods or services;
(6) fixing geographical areas in which each business operator may purchase goods or
services or fixing persons from whom business operators may purchase goods or services;
(7) fixing the quantity of goods or services in which each business operator may produce,
purchase, distribute, or provide with a view to re stricting the quantity to be lower than the market
demand;
(8) reducing the quality of goods or services to a level lower than that in the previous
production, distribution or provision, whether the distribution is made at the same or at a higher price;
(9) appointing or entrusting any person as a sole distributor or provider of the same
goods or services or the same kind of goods or services;
(10) fixing conditions or practice with regard to the purchase or distribution of goods or
the provision of services in order to achieve the uniform or agreed practice.
In the case where it is commercially necessary that the acts under (5), (6), (7), (8), (9) or (10)
be undertaken within a particular period of time, th e business operator shall submit an application for
permission to the Commission under section 35.
Section 28.  A business operator who has business relation with business operators outside
the Kingdom, whether it is on a contractual basis or through policies, partnership, shareholding or any
other similar form, shall not carry out any act in order that a person residing in the Kingdom and
intending to purchase goods or services for personal consumption will have restricted opportunities topurchase goods or services directly from business operators outside the Kingdom.
Section 29.  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.
Section 30.  The Commission shall have the power to issue a written order requiring a
business operator who has market domination, with the market share of more than seventy five
percent, to suspend, cease or vary the market share.  For this purpose, the Commission may prescribe
rules, procedure, conditions and time-limit for compliance therewith.
Section 31.  In the case where the Commission considers that a business operator violates
section 25, section 26, section 27, section 28 or  section 29, the Commission shall have the power to
issue a written order requiring the business operator to suspend, cease, rectify or vary such act.  Forthis purpose, the Commission may prescribe rules, procedure, conditions and time limit for
compliance therewith.
The business operator who receives the order under paragraph one and disagrees therewith
shall have the right to appeal under section 46.
The business operator may not claim compensa tion from the Commission by reason that the
Commission has issued the order under paragraph one.WT/WGTCP/W/150
Page 16
Section 32.  In the consideration of the case under section 31, the Commission must afford
the business operator, members of the specialized sub-committee, members of the inquiry sub-
committee or competent officials concerned reasonable opportunities to give explanations and present
supporting evidence.
In issuing an order under section 31,  the Commission must specify reasons for such order
both in questions of fact and in questions of law, and signatures of the members considering the case
shall be entered.
The notification of the order under paragraph two shall be carried out within seven days as
from the date of the Commission's order, and section 22 shall apply mutatis mutandis .
Section 33.  The person receiving the order under section 31 must comply with such order
unless the Court or the Appellate Committee passes a judgement or issues an order suspending the
execution thereof or revoking the order of the Commission.
Section 34.  In the case where the Court passes a judgement that any business operator is
guilty of an offence under section 25, section 26, sect ion 27, section 28 or section 29, the Court shall
issue an order requiring the business operator to suspend, cease, rectify or vary such act.
CHAPTER IV
Application for Permission and Consideration of the Application
_______________
Section 35.  Any business operator wishing to apply fo r permission to carry out the act under
section 26 or section 27(5), (6), (7), (8), (9) or (1 0) shall submit an application in accordance with the
form, rules, procedure and conditions prescribed and published in the Government Gazette by the
Commission.
The application must at least:(1) contain adequate reasons and specify necessity for the act;
(2) specify the intended procedures therefor;
(3) specify the duration therefor.
Section 36.  The Commission shall complete the consideration of the application under
section 35 within ninety days as from the date of its receipt;  provided that the business operator,
members of the specialised sub-committee or competent officials concerned must be affordedreasonable opportunities to give explanations and present supporting evidence.
In the case where the consideration cannot be completed within the time specified in
paragraph one by reason of necessity, the Commission may grant an extension of time for not more
than fifteen days, but the reasons and necessity fo r the extension shall also be recorded in the
consideration and decision proceedings.
Section 37.  When the Commission has made an inquiry and is of the opinion that the
application under section 35 submitted by the business operator is reasonably necessary in the
business, beneficial to business promotion, has no serious harm to the economy and has no effect on
material and due interests of general consumers, the Commission shall issue a written order grantingWT/WGTCP/W/150
Page 17
permission in favour of such business operator.  But if the Commission issues an order rejecting
permission, the order shall be notified in writing to the business operator without delay.
In granting permission under paragraph one, the Commission may fix the time or any
condition for compliance by the business operator to whom permission is granted, and, if it is of the
opinion that economic situations, facts or conduct relied on by the Commission in its considerationhave changed, the Commission may amend, make addition to , or revoke such time or conditions at
any time.
The business operator who receives the order of the Commission and disagrees with such
order shall have the right to appeal under section 46.
Section 38.  The Commission must specify reasons for the order granting or rejecting
permission under section 37 both in questions of fact and in questions of law and the order shall
contain signatures of the members considering the application, and the provisions of section 32paragraph three shall apply mutatis mutandis .
Section 39.  The business operator to whom permission is granted under section 37 must
carry out the business within the scope, duration and conditions permitted by the Commission.
In the case here there is a violation of or failure to comply with paragraph one, the
Commission shall have power to revoke the permissi on order under section 37 in whole or in part and
may also fix the time within which compliance is required.
CHAPTER V
Initiation of an Action for Compensation
_______________
Section 40.  The person suffering an injury in consequence of the violation of section 25,
section 26, section 27, section 28 or section 29 may initiate an action for claiming compensation from
the violator.
In initiating an action for claiming compensation under paragraph one, the Consumer
Protection Commission or an association under th e law on consumer protection has the power to
initiate an action for claiming compensation on behalf of consumers or members of the association, as
the case may be.
Section 41.  If the action for claiming compensation under section 40 is not submitted to the
Court within one year as from the date the person suffering the injury has or ought to have had the
knowledge of the ground thereof, the right to submit the action to the Court shall lapse.
CHAPTER VI
The Appeal
_______________
Section 42.  There shall be an Appellate Committee consisting of not more than seven
qualified persons with knowledge and experience in law, economics, business administration or
public administration appointed by the Council of Ministers as members.WT/WGTCP/W/150
Page 18
The members of the Appellate Committee shall elect one member among themselves as
Chairman.
The Director-General of the Department of Internal Trade shall appoint Government officials
of the Department of Internal Trade to act as secretary and assistant secretaries.
Section 43.  The person appointed as member of the Appellate Committee must not be under
the prohibitions under section 7 and shall not be a member of the Commission.
Section 44.  The Appellate Committee shall have the following powers and duties:
(1) to prescribe the rules and procedure for the appeal under section 47 paragraph one;(2) to consider and decide on the appeal against an order of the Commission under
section 31 and section 37;
(3) to issue a written summons requiring the persons concerned to give statements or
furnish documents or evidence for the purpose of the consideration of the appeal;
(4) to issue an order suspending the execution of the order of the Commission under
section 31 or section 37.
Section 45.  A member of the Appellate Committee shall hold office for a term of four years.
In the initial period, at the expiration of two years, three members of the Appellate Committee
shall vacate office by drawing lots and such vacation of office by drawing lots shall be deemed to be
the vacation of office at the expiration of the term.
The provisions of section 9 paragraph three and section 10 shall apply to the Appellate
Committee mutatis mutandis .
Section 46.  The appeal against the order of the Commission under section 31 and section 37
shall be submitted to the Appellate Committee by the person receiving the order within thirty days as
from the date of the knowledge of the Commission's order.
Section 47.  The rules and procedure for the appeal shall be as prescribed and published in the
Government Gazette by the Appellate Committee.
The Appellate Committee shall consider and decide on the appeal within ninety days as from
the date of the receipt thereof and notify the decisi on in writing to the appellant, and the provisions of
section 36 and section 38 shall apply mutatis mutandis .
The decision of the Appellate Committee shall be final.
When the Appellate Committee has decided upon the appeal, the Commission and business
operators shall comply with such decision.WT/WGTCP/W/150
Page 19
CHAPTER VII
Penalties
_______________
Section 48.  Any person who fails to comply with the written summons issued by the
specialised sub-committee, competent official or the Appellate Committee under section 13 paragraph
three, section 19 (1) or section 44 (3), as the may be, shall be liable to imprisonment for a term not
exceeding three months or to a fine not exceeding five thousand Baht or to both.
Section 49.  Any person who obstructs the performance of duties by the competent official
under section 19(2), (3) or (4) or section 22 shall be liable to imprisonment for a term not exceeding
one year or to a fine not exceeding twenty thousand Baht or to both.
Section 50.  Any person who fails to render assistance to the competent official under
section 20 shall be liable to imprisonment for a term not exceeding one month or to a fine notexceeding two thousand Baht or to both.
Section 51.  Any person who violates section 25, section 26, section 27, section 28 and
section 29 or fails to comply with section 39 shall be liable to imprisonment for a term not exceeding
three years or to a fine not exceeding six million Baht or to both, and, in case of the repeatedcommission of the offence, shall be liable to the double penalty.
Section 52.  Any person who fails to comply with the order of the Commission under section
30 or section 31 or with the decision of the Appellate Committee under section 47 shall be liable to
imprisonment for a term of one to three years or to a fine of two to six million Baht, and to a dailyfine not exceeding fifty thousand Baht th roughout the occurrence of such violation.
Section 53.  Any person who discloses information concerning the business or the operation
of a business operator which, according to the ordinary course of dealing of the business operator, is
the restrictive and confidential information and which such person has acquired or knew on account of
the performance under this Act shall be liable to imprisonment for a term not exceeding one year, or
to a fine not exceeding one hundred thousand Baht or to both, unless it is the disclosure in theperformance of Government service or for the purpose of an inquiry or trial.
Any person who acquires or has the knowledge of any fact from the person under paragraph
one and discloses such information in the manner likely to cause an injury to any person shall be
liable to the same penalty.
Section 54.  In the case where the person who commits an offence punishable under this Act
is a juristic person, then, the managing director, the managing partner or the person responsible for the
operation of the business of the juristic person in such matter shall also be liable to the penalty
provided by the law for such offence unless it is proved that such act has been committed without hisor her knowledge or consent or he or she has already taken reasonable action for preventing the
commission of such offence from occurring.
Section 55.  The injured person in the offences under section 51 and section 54 may not
institute a criminal action on his or her own motion but has the right to lodge a complaint with theCommission for consideration under this Act.
Section 56.  All offences under this Act which are punishable by fine or imprisonment for a
term not exceeding one year shall be under the power of the Commission to settle the cases.  InWT/WGTCP/W/150
Page 20
exercising such power, the Commission may entrust a sub-committee, the Secretary-General or a
competent official to act on its behalf.
When the offender has paid the fine in the fi xed amount within the specified time, the case
shall be deemed settled in accordance with the provisions of the Criminal Procedure Code.
17
Transitory Provision
_______________
Section 57.  In the case where a business operator is under necessity and has carried out the
acts specified in section 27(5), (6), (7), (8), (9) or (10) on the day this Act comes into force, such
person shall submit an application within ninety days as from the date of the entry into force of this
Act, and when the application has been submitted, such business operator may continue to carry out
the acts under section 27(5), (6), (7), (8), (9) or (10) until the notification of the result of theconsideration of the application is received.
Countersigned by:
  Chuan Leekpai
    Prime Minister
__________