Trade regulator defends new platform rules

The Trade Competition Commission of Thailand (TCCT) has reaffirmed its authority to regulate fee structures of ride-hailing, food delivery, and e-commerce platforms. Despite two major food delivery companies reportedly considering legal action, the TCCT remains committed to its planned new guidelines. The commission will hold public hearings from November 4 to December 3 to discuss draft regulations for these digital platforms.

Pol Lt Gen Pittaya Siriraksa, a TCCT commissioner, clarified that Section 17(2) and (3) of the Trade Competition Act grants the commission the power to issue such guidelines, ensuring free and fair competition. The commission has not received formal notification of any legal proceedings but is prepared to defend its authority. If the Administrative Court rules against the commission, the notification would be revoked.

Commission policies aim to prevent unfair practices like unjustified fee increases, discriminatory charges, and algorithmic favoritism. The draft guidelines mandate transparent fee calculations, at least 90-day written notice before fee changes, and the prohibition of unjustified fee increases, discriminatory charges, and forced exclusivity.

Platforms must also disclose search ranking and order allocation principles, protect commercial data, and establish fair dispute resolution mechanisms. These rules apply irrespective of market dominance. The Thai Digital Platform Trade Association has asked the commission to clarify whether the regulations target fee structures or actual commission rates, warning that requirements for fee change notifications could hinder operational flexibility and innovation.

The TCCT is also advancing proposed regulations for service fees and product delivery arrangements on multi-sided e-commerce platforms, aiming for an announcement before the New Year.