The Commerce Ministry will soon strengthen its Trade Competition Act by redefining market dominance as a share of only 30 per cent, down from 50 per cent currently, to protect consumers in the changing trade environment towards a seamless system.
At a seminar on "Definitions and Restrictions for Market Leaders" held by the Internal Trade Department yesterday, panellists asked the ministry to revise its definition of market dominance, as the trading environment was changing amid the move towards the Asean Economic Community (AEC).
The panellists said large enterprises that now have more than 30-per-cent share could monopolise the market and influence consumers and suppliers. Thus the government should restrict their power to ensure fair competition to all players.
Commerce Minister Boonsong Teriyapirom, who chaired the seminar, said revision of the market-dominance regulations was needed to protect consumers and small traders from unfair trading.
The regulations have been in force for many years but have never been used to punish unfair traders. Their revision will ensure that a giant trader cannot easily manipulate the market by forcing its suppliers and consumers to agree to unfair conditions, he said.
Boonsong added that the revision of this law was also urgently needed to ensure fair practice and a level playing field for Thai entrepreneurs as the country liberalises the market for other Asean enterprises.
"Market dominance" is currently defined as a player having a market share in the previous year of at least 50 per cent and annual sales of at least Bt1 billion. The revision will reduce the market share to 30 per cent.
According to the Fiscal Policy Research Institute, 10 businesses that are at risk of market dominance are beer, alcohol, craft paper, paper pulp, bunker oil, plastic pellets, mirrors, steel sheet, cable TV and feed meal.
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Article source: http://www.thethailandlinks.com/2012/12/16/market-dominance-rule-set-to-change/
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