What To Know
- Thailand is escalating its regulatory clampdown on digital platforms and online commerce in a sweeping move to protect consumers and prevent the flood of counterfeit or unsafe products in the market.
- The Thai Ministry of Public Health regards these developments as a turning point in enhancing safety in digital commerce, especially as social commerce becomes the dominant channel for purchasing consumer goods.
Bangkok Business News: Tighter Oversight for a Booming E-Commerce Sector
Thailand is escalating its regulatory clampdown on digital platforms and online commerce in a sweeping move to protect consumers and prevent the flood of counterfeit or unsafe products in the market. As online retail sales surge past the one-trillion-baht mark, authorities are rolling out a new wave of policies designed to impose stricter compliance on major e-commerce operators.
Tighter Oversight for a Booming E-Commerce Sector in Thailand
Image Credit: AI-Generated
On July 9, the Royal Gazette officially released the Electronic Transactions Development Agency’s (ETDA) latest directive, listing 19 high-impact digital platforms that must now adhere to Section 20 of the Digital Platform Services royal decree. Effective from July 10, the list includes leading names such as Shopee, Lazada, TikTok, AliExpress, and Kaidee, among others. This Bangkok Business News report highlights that the list will undergo annual reviews as part of the government’s broader digital consumer protection strategy.
In tandem with these rules, ETDA and affiliated agencies are aggressively targeting fraudulent and illegal advertisements—an issue that cost Thai consumers over 19 billion baht last year. The Food and Drug Administration (FDA) has formed partnerships with Lazada, Shopee, and LINE Shopping, rolling out advanced API systems to block unauthorized health products from being sold online.
AI Surveillance and Public Trust Initiatives
To keep pace with increasingly sophisticated digital fraud, the Thai has also teamed up with academic and tech institutions like Mahidol University and King Mongkut’s University of Technology Thonburi. Together, they’re creating AI-based tools to detect smuggled or improperly labelled health products. The initiative, backed by the World Health Organization’s Thailand office, signals a coordinated national effort to integrate regulatory policy, technology, and research to safeguard public trust in online marketplaces.
The Thai Ministry of Public Health regards these developments as a turning point in enhancing safety in digital commerce, especially as social commerce becomes the dominant channel for purchasing consumer goods.
E-Commerce Booms but Comes with New Risks
Thailand’s e-commerce market soared by 14% in 2024 to reach 1.1 trillion baht, and projections show it hitting 1.6 trillion baht by 2027. Shopee leads the market with 75% of consumers using the platform, followed by Lazada at 67% and TikTok at 51%. With TikTok’s rapid rise, industry insiders believe it may soon eclipse traditional marketplaces entirely.
TikTok Shop (Thailand) Co., Ltd., which launched in late 2023 with 200 million baht in capital, posted over 12 billion baht in revenue, reflecting the platform’s meteoric growth. However, this success is raising red flags over market fairness.
Analysts warn that TikTok’s algorithm-driven shopping experience, which integrates video content and purchasing in one seamless flow, might be suppressing competition by deprioritising links to rival platforms and forcing merchants to stay within TikTok’s ecosystem.
Growing Concerns from Small Sellers and Logistics Providers
While many businesses benefit from TikTok’s reach, small vendors are voicing dissatisfaction over opaque visibility rules and mounting operational costs. “If you don’t pay for ads or join TikTok campaigns, your product barely gets seen,” one vendor complained. Others lament rising commission fees and mandated use of specific logistics providers, especially as TikTok reportedly favours J&T Express over Thailand Post.
Thailand Post President Danan Suphatthaphan revealed that the postal service had entered a partnership with TikTok in mid-2024 but still lacks access to core sales and order data, making performance tracking difficult. He estimates Thailand Post’s share of TikTok parcel deliveries at only 1–2%, a dramatic drop from when it was a primary partner.
Academic Warnings and Global Lessons
Assoc. Prof. Pornthep Benyaapikul from Thammasat University warns that TikTok’s role in merging social media with e-commerce is attracting regulatory scrutiny around the world. Practices such as “self-preferencing”—prioritising internal content or sales tools—and downranking competitor-linked posts mirror behaviour that led Indonesia to temporarily ban TikTok Shop in 2023.
As international regulators like those in the EU label TikTok a “gatekeeper” under new digital legislation, Thailand faces mounting pressure to ensure its own frameworks are robust enough to prevent anti-competitive behaviour.
A Critical Fork in the Road
Thailand’s digital economy is expanding at lightning speed, but the pace of regulatory reform has lagged behind. Without clear distinctions between TikTok’s roles as a media entity and marketplace, or accountability in how its algorithms shape commerce, concerns will likely intensify. The challenge now is crafting legislation that ensures a fair, competitive, and transparent e-commerce environment that supports innovation without marginalising smaller players.
What’s at stake isn’t just fair competition, but the long-term health of Thailand’s online economy, which could either evolve into a resilient and inclusive marketplace—or become dominated by a few powerful gatekeepers.
For the latest on e-commerce platforms in Thailand, keep on logging to Bangkok Business News.
