The Trade Competition Commission is looking to regulate e-commerce in the country to prevent a possible monopoly and protect local providers.
According to Sakon Varanyuwatana, chairman of the Trade Competition Commission, the commission is working under the new Trade Competition Act to develop systems for trading and businesses in the country, including in e-commerce, to ensure fair competition and prevent large-scale players from blocking smaller rivals.
"Several [jurisdictions] such as the US, Europe and Japan have already put in place regulations to regulate e-commerce and curb monopolies, while Thailand remains lenient," Mr Sakon said. "Nonetheless, e-commerce in Thailand has been flourishing and the major players are all foreign."
The value of e-commerce in Thailand grew by 14% in 2018, reaching some 3.2 trillion baht, and growth is expected to hit 20% this year, according to the Electronic Transactions Development Agency.
Thailand's e-commerce growth was the highest in Asean, attributable to changes in consumer behaviour. In 2017, the value of Thai e-commerce was around 2.7 trillion baht, up from 2.5 trillion and 2.24 trillion in 2016 and 2015, respectively.
The market is dominated by three players: Alibaba's Lazada, Sea Group's Shopee and JD Central, a JD.com venture with Central Group.
According to Mr Sakon, over the next two weeks the commission will step up studying the EU's trade competition regulations with the intent of emulating the framework in Thailand.
The commission will also request information on regulations from Japan and the US before issuing the new regulations on e-commerce, possibly within this year.
"We aim for the new regulations to not obstruct e-commerce activities in Thailand," Mr Sakon said. "The regulations should be issued to create fair competition in the e-commerce business."
Santichai Santawanpas, a member of the Trade Competition Commission, said the commission is also stepping up to clear pending cases under the former Trade Competition Act, long called a "paper tiger" for failing to hand out penalties for violations.
Thailand's new Trade Competition Act went into force last October.
The new law includes expanded powers for the Trade Competition Board, making it independent from the government.
