OECD Peer Reviews of Competition Law and Policy: Thailand

The TCA grants certain advocacy competences to the TCCT, including issuing advocacy opinions, performing market studies, organising trainings and raising awareness on competition law within the government and the public in general.1 However, the legal provisions on advocacy are brief, lacking specific guidance on how the TCCT should execute these functions. Additionally, there is limited publicly available information on the TCCT’s advocacy efforts, which were neither provided during the Peer Review process. This hindered a more detailed assessment of TCCT’s activities in this area.

The TCCT may provide opinions and non-binding recommendations to the Minister of Commerce, the Cabinet and government agencies (such as sector regulators, including those with competition enforcement powers) on policies and regulations to ensure they promote competition.2 These activities are carried out by the Political Affairs Division, and formal opinions and recommendations must be approved by the TCC.

The TCCT does not have the power to submit advocacy opinions to Parliament (e.g. regarding bills or existing laws) or other Ministries, as confirmed during the OECD fact-finding mission. Therefore, advocacy opinions are limited to secondary legislation (e.g. regulations issued by sector regulators) and public policies (e.g. on international trade and price regulation by the Ministry of Commerce).

The TCA is silent on whether TCCT’s advocacy actions can be initiated ex officio and/or following a request by the relevant authority or an interested party (e.g. those whose interests may be affected). There are also no established deadlines for the TCCT to submit an opinion. Furthermore, the TCA is silent on whether the public bodies receiving TCCT opinions are required to respond or provide a justification if they decide to disregard the recommendations.

The TCCT has not adopted internal regulations that provide further details on the procedures and substantive assessment when preparing these opinions, such as criteria for identifying potential competition concerns and a methodology for reviewing public policies and regulations that may distort competition. Additionally, the TCCT does not follow up on the implementation of its recommendations.

TCCT opinions are not publicly available. During the OECD fact-finding mission, TCCT staff mentioned that these efforts are still in the early stages, with an initial focus on acts from the Ministry of Commerce. They provided only a few examples of past advocacy initiatives, without detailed information.3 No concrete examples of opinions to sector regulators with competition enforcement powers were reported.

According to the OECD Recommendation on Competition Assessment, jurisdictions should introduce appropriate processes to identify existing or proposed public policies (including both regulations and legislation) that unduly restrict competition, develop specific and transparent criteria for performing competition assessments and adopt more pro-competitive alternatives. Competition authorities should be associated with the process of competition assessment (OECD, 2019[34]).

The TCCT is in charge of training and outreach activities aimed at disseminating knowledge and raising awareness among other government entities, economic players and the general public about the importance of competition and its benefits.4 These activities are carried out by the Information and Public Advocacy Division.

There is no structured plan on outreach activities, which are conducted on a case-by-case basis.

During the OECD fact-finding mission, TCCT staff mentioned that their efforts have focused on raising awareness of competition law among business operators and addressing issues that have received a high number of complaints, in co-ordination with the Investigation Unit.

The TCCT has conducted educational campaigns and published content on its website and social media platforms,5 as well as in general media, such as radio, TV and newspapers. These activities have also included songs developed to help the public understand competition law.

Furthermore, the TCCT has organised events several training events with government agencies (e.g. BOT, NACC and NBTC), the business community and universities. These include, for example, a seminar in December 2022 to raise awareness about competition law and trade credit terms in the lower northern region of Thailand, attended by over 120 participants;6 a lecture on merger control for university students in April 2023;7 and a training session on competition law for employees of a company in March 2024.8

The TCCT has also developed a free online course, accessible by anyone through its e-learning platform, providing basic knowledge of competition law and economics.9 TCCT staff interviewed by the OECD mentioned that the first module of the online course is already operational and additional modules are expected to be developed to offer more in-depth content.

The TCCT has never evaluated the effectiveness of its outreach activities in raising awareness of competition law among business, public officials and citizens. Nevertheless, TCCT staff mentioned they intend to measure the impact of their advocacy efforts in the future.

The TCA grants the TCCT the power to conduct market studies to research and assess the functioning of sectors and make recommendations to promote competition.10 Moreover, the TCA provides that the TCCT must publish a database on markets that are likely to be monopolised.11 These activities are conducted by the Market Structures for Consumer Products, Market Structures for Commodities and Market Structures for Services Divisions.

Neither the TCA nor TCCT’s internal regulations provide a clear process or methodology for conducting market studies. For example, there is no guidance on how to decide which markets and sectors should be subject to a market study (e.g. based on relevance, barriers to entry or consumer impact). Likewise, the procedures for carrying out a market study are unclear, including who has the authority to initiate a market study and approve its conclusions, as well as applicable deadlines and relevant powers (e.g. to issue requests for information).

Several competition authorities in OECD and non-OECD jurisdictions conduct some kind of market study and have defined a methodology and a process for carrying out them. The OECD published the Market Studies Guide for Competition Authorities in 2018, including the main steps that a market study should include: (i) selection of market or sector; (ii) scoping and project planning; (iii) preliminary information collection; (iv) market study launch; (v) methodology selection; (vi) additional information collection; (vii) analysis; (viii) selection of outcomes, reporting and outreach; and (ix) ex-post evaluation (OECD, 2018[35]). The ICN Market Studies Good Practice Handbook, which complements the OECD guide, highlights the importance of making the findings and outcomes of market studies publicly available (ICN, 2016[36]).

Market studies are typically not publicised, even after finalised. According to TCCT stakeholders interviewed by the OECD, these reports contain confidential information like trade secrets, which prevents their publication. At the time of writing, only three market studies were available online (concerning the sectors of beer, charging stations and electric vehicles), but only one included substantial information on its content, such as competition dynamics and recommendations (TCCT, 2023[37]). The OECD team did not receive additional consistent information on other market studies, even though stakeholders indicated that the TCCT had hired consultants to conduct market studies in the past.

Furthermore, at the time of writing the TCCT had conducted market research, and developed and published databases for a few markets (e.g. beer and granulated sugar markets), as provided for by the TCA.12

Effective co-operation between competition authorities and domestic entities with mandates relevant to competition – such as sector regulators and policy making bodies – is essential for achieving effective competition policy and enforcement. For instance, these entities can promote competition through their own activities and contribute with their expertise to enhancing the work of competition authorities.

International co-operation among competition authorities is also crucial for competition enforcement, particularly in the increasingly internationalised economy. International co-operation can address cross-border competition harm, reduce enforcement costs and delays, and limit the risk of inconsistent decisions. Furthermore, international co-operation supports domestic enforcement through sharing of experience and knowledge, as recognised in the OECD Recommendation concerning International Co-operation on Competition Investigations and Proceedings (OECD, 2014[38]).

The TCA sets out an obligation for the TCCT to co-operate with domestic entities (particularly government authorities), including by exchanging information and entering into agreements, to ensure the effective application of the law.13

In this context, the TCCT has entered into formal Memoranda of Understanding (MoUs) with the following institutions:

These MoUs intend to strengthen the relationship between the TCCT and these institutions, by facilitating for the exchange of information, sharing knowledge and jointly developing policies related to competition, with the aim of promoting competition and enhancing the understanding of competition law among their staff.

As international experience has shown, while MoUs signal a willingness of the authorities to engage in dialogue, they only provide a more formal framework for co-operation but cannot ensure that it will occur in practice.

Based on the limited publicly available information, which was also confirmed by several stakeholders during the OECD fact-finding mission, domestic co-operation in Thailand is in an initial stage, even with authorities with whom the TCCT has established MoUs. In practice, the TCCT and some of these entities (e.g. the NBTC, the ERC and the OSMEP) have held meetings to discuss topics of common interest and exchanged information on a few occasions.

In addition, these MoUs have a set duration and, in some cases, have not been immediately renewed. For instance, the MoU with the NBTC has expired since September 2023, although the TCCT mentioned that it is in the process of renewing it.

Stakeholders also reported that informal co-operation has occurred in the absence of formal MoUs. For example, the TCCT sent representatives to participate in working groups or committees within the Anti-Dumping Committee of the Department of Foreign Trade of the Ministry of Commerce, which deals with trade issues. The TCCT also shared information with the Office of National Economic and Social Development Board (NESDB) with the aim of integrating competition policy into the overall national strategy. Additionally, TCCT officials attended meetings with the Economic Development Committee to strengthen support for SMEs.

The OECD is not aware of any co-operation activities with the NACC nor the Office of the Consumer Protection Board (OCPB).

The TCA also mandates that the TCCT co-operate with foreign competition authorities and international organisations regarding competition law and policy, including by signing agreements with such entities.14

At the time of writing, the TCCT had not signed international agreements with foreign competition authorities.

Based on the limited information provided to the OECD team, international co-operation on competition issues in Thailand is still nascent, primarily focusing on sharing experiences and knowledge, and capacity-building activities. For instance, the TCCT has engaged in bilateral co-operation with Australia, the European Union, Japan and Korea through meetings with chairpersons, online trainings and staff exchanges.15

There have been no significant co-operation efforts on competition enforcement issues, although the TCCT has expressed its intention to pursue such activities in the future.

Furthermore, Thailand has been a member of the Association of Southeast Asian Nations (ASEAN) since 1967.16 Recognising the importance of economic integration, the ASEAN Free Trade Area was established in 2003, and the ASEAN Economic Community (AEC) has since become one of the pillars of the ASEAN Community. The AEC pursues four key objectives: (i) establishing a single market and production base, (ii) creating a competitive economic region, (iii) ensuring equitable economic development and (iv) fully integrating the region into the global economy (ASEAN, 2024[39]). To achieve these goals, ASEAN members are currently negotiating the ASEAN Framework Agreement on Competition (AFAC), a formal agreement which aims at facilitating cross-border co-operation and co-ordination on competition matters among ASEAN competition authorities (ASEAN, 2022[40]). The TCCT has been actively involved in these negotiations.

Additionally, Thailand is a member of the Regional Comprehensive Economic Partnership (RCEP), which became effective since January 2022. This free trade agreement involves ASEAN countries, along with Australia, the People’s Republic of China, Japan, Korea and New Zealand. It provides one chapter on competition, including a framework for co-operation among competition authorities to promote effective enforcement of competition law, for instance through notifications, mutual discussions, information exchange and co-ordination (DFAT, 2020[41]).

Moreover, Thailand is a member of the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA), which has been in force since 2010 and aims to promote “sustainable economic growth in the region by providing a more liberal, facilitative and transparent market and investment regimes among the twelve signatories to the Agreement” (AANZFTA, 2024[42]). This agreement also includes a chapter on competition, establishing a framework for co-operation among competition authorities, which includes for instance the exchange of experiences and publicly available information, participation in training programmes and exchange of officials (AANZFTA, 2009[43]).

In Thailand, the TCCT is the entity responsible for enforcing the competition chapters of the aforementioned FTAs, but at the time of writing no concrete actions had been taken in this regard.

The TCCT has also engaged with international entities. For instance, the International Trade Centre (ITC) implemented the ARISE Plus Thailand Project (2020-2023), funded by the European Union, with the aim of supporting inclusive and sustainable trade growth and poverty reduction in Thailand, while contributing to economic integration in the ASEAN region. The project provided technical support to enhance the capacity of TCCT staff and strengthen co-operation with domestic authorities (ITC, 2024[44]).

Thailand has also engaged with the United Nations Trade and Development (UNCTAD), in particular through a Technical Assistance Project, which included (i) a market study on cross-border online travel agency in the hospitality and tourism sectors in Thailand; (ii) guidance on competition law in multisided platforms within these sectors; and (iii) training for TCCT staff (TCCT, 2024[45]).

Finally, the TCCT has co-operated with the OCDE on several fronts. First, TCCT has participated in the annual meeting of the Global Forum on Competition (GFC) and the workshops of the OECD Regional Centre for Competition in Asia-Pacific in Seoul. Second, Thailand has benefited from a Competition Assessment Review of the logistics sector (OECD, 2020[46]), as well as a Competitive Neutrality Review of small-package delivery services (OECD, 2020[11]), conducted within the context of the “Fostering competition in ASEAN” project, carried out by the OECD Secretariat and funded by the UK Prosperity Fund. Third, Thailand also benefited from an OECD Country Programme in two phases since 2018, including a competition pillar. In the first stage of the country programme, six workshops were organised to train TCCT and other Thai officials on competition-related issues. In addition, a report on merger guidelines was prepared to assist the TCCT in developing its own guidelines (OECD, 2021[32]). The second phase of the programme is currently ongoing and includes this Peer Review, as well as training activities scheduled for 2025.