What To Know
- The Trade Competition Commission of Thailand (TCCT) is set to introduce sweeping new rules aimed at curbing the power of major e-commerce platforms and protecting smaller retailers.
- These measures are grounded in Sections 54-58 of the Trade Competition Act, giving the TCCT power to act against unfair practices by companies operating in Thailand, even if they are registered abroad.
Bangkok Business News: New Regulatory Push to Safeguard Fair Play
The Trade Competition Commission of Thailand (TCCT) is set to introduce sweeping new rules aimed at curbing the power of major e-commerce platforms and protecting smaller retailers. These measures follow mounting evidence of unfair practices such as excessive commission fees, exclusive logistics arrangements, and algorithmic bias that disadvantages independent sellers.
This Bangkok Business News report highlights that under the draft, Thailand will move from reactive oversight to preventive regulation. Instead of waiting for problems to occur, the TCCT wants to stop monopolistic and oligopolistic practices before they reshape the market. Public comments are open until 18 September 2025, and the commission expects enforcement to begin by October 2025.
TCCT unveils draft rules aimed at curbing e-commerce giants and protecting small Thai retailers
Image Credit: AI-Generated
Growing Pressures on Small Retailers
Pawoot Pongvitayapanu, adviser and honorary president of the Thailand E-commerce Association, revealed that platforms like Shopee, Lazada, and TikTok Shop earn billions while many local retailers survive on margins below 10%. Shopee alone reportedly generated 85.79 billion baht in revenue and over 5.42 billion baht in profit last year.
Retailers often face 15–25% commission rates, limited bargaining power, and forced use of platform-controlled logistics, such as TikTok’s requirement for J&T Express. This dominance extends across advertising, customer data, and even financial transactions, leaving smaller businesses with little leverage to compete.
What the Draft Rules Will Address
The TCCT’s draft guidelines, presented by legal management director Piyaphat Thab-in, propose several key protections:
-Logistics freedom: sellers must be allowed to choose third-party delivery services.
-Fair treatment: no algorithmic bias favoring platform-owned shops or discriminatory ranking systems.
-Pricing autonomy: platforms cannot force participation in below-cost promotions.
-Transparency: hidden fees and unfair contract terms will be prohibited.
These measures are grounded in Sections 54-58 of the Trade Competition Act, giving the TCCT power to act against unfair practices by companies operating in Thailand, even if they are registered abroad.
Potential Impact on the Market
If implemented effectively, the rules could rebalance the playing field for local retailers. Sellers would gain more control over logistics, clearer pricing structures, and improved protection from arbitrary platform decisions. Meanwhile, dominant platforms would face stricter oversight on how they set fees, use data, and apply algorithms.
Still, challenges remain. Regulators must ensure enforcement is strong enough to deter abuse while avoiding over-regulation that could discourage investment or innovation. Much will depend on transparency, penalties, and ongoing monitoring once the guidelines take effect.
Thailand’s move signals a turning point for its digital economy. By standing up to e-commerce giants, the country aims to ensure that smaller retailers not only survive but thrive in a rapidly changing marketplace.
For the latest Ecommerce in Thailand, keep on logging to Bangkok Business News
