Legal service for foreign clients
Competition Law and Unfair Trade Practices in Thailand
A clause that reads as ordinary commerce can look like abuse of market power to the regulator.
Quick answer
The Trade Competition Act B.E. 2560 prohibits abuse of a dominant position, agreements that restrict competition, and unfair practices against smaller counterparties, and it requires qualifying mergers to be notified to or cleared by the Trade Competition Commission. Sanctions are administrative or criminal depending on the ground. We review distribution contracts and pricing policies, assess merger filing duties, build internal compliance manuals, and defend complaints. Engagements start at THB 50,000.
From THB 50,000 — Reviews and manuals are fixed-scope, while merger filings and defence work are priced by the complexity of the market involved. · Contract and policy reviews take one to two weeks; merger authorisation follows the commission's statutory timeline.
Who this is for
- Manufacturers setting resale pricing and territory policy for dealers
- Suppliers charged excessive fees by large retailers
- Partners whose distribution agreement was terminated abruptly
- Companies in a merger needing a notification assessment
- Trade associations wary of price information exchange between members
What you receive
- A contract and policy review flagging each risky provision individually
- A market-share analysis against the merger notification thresholds
- A sales-team playbook that works in day-to-day negotiation
- Submissions to the commission supported by economic evidence
- Damages claims arising from unfair trade conduct
Documents to prepare
- Dealer agreements, supply contracts and the trading terms in use
- The pricing and discount structure applied to each channel
- Sales data and market-share estimates for the products
- Communications with competitors or the relevant association
- Any complaint or request for explanation received
How it works
5-step process
- 1
Assess market position before assessing conduct
Identical conduct may be lawful or not depending on share and bargaining power, so defining the relevant market always comes first.
- 2
Separate acceptable restraints from prohibited ones
Setting after-sales service standards is not the same as dictating resale prices; the first is usually defensible, the second is always high risk.
- 3
Test the merger thresholds before signing
Closing a deal that required prior authorisation invites fines and an unwinding exercise far heavier than the filing itself.
- 4
Record the commercial rationale in writing
A price rise or supply stop backed by cost and stock reasoning is far easier to explain to the commission than an undocumented decision.
- 5
Answer information requests in a structured way
An answer that runs beyond the question opens new fronts, so we respond to the point and attach only what was asked for.
FAQ
Frequently asked questions
May a supplier fix the dealer's retail price?
Imposing a resale price is a high-risk restraint; a recommended price that dealers can genuinely depart from is the safer route and should be documented as such.
Are retailer entry and promotion fees unlawful?
Not in themselves, but they become a problem when charged without justification, without advance notice, or retroactively, and the commission's guidelines address this in detail.
Should mid-sized businesses worry about this law?
Yes, because the ban on restrictive agreements applies to businesses of any size, not only dominant ones, so discussing prices with a competitor is always risky.
Must a small acquisition be notified?
It turns on the combined turnover involved and the effect on market structure; some deals only need post-completion notification while others require prior authorisation, so the numbers should be tested before fixing a closing date.
What if a distributorship is cut off suddenly?
First check what notice the contract required, then consider whether the termination was an unfair use of superior bargaining power; damages may be available on either footing.
How severe are the penalties?
The gravest grounds, such as direct price-fixing between competitors, carry imprisonment and turnover-based fines, while other grounds attract administrative fines that are likewise calculated on revenue during the breach.
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Written by: Thai Law & Accounting Services — attorneys and licensed accountants
Reviewed by: Reviewed by a Notarial Services Attorney registered with the Lawyers Council of Thailand.
Last updated: 2026-08
Information as of August 2026. Government fees and processing times change — verify with the relevant agency before acting, or let our team verify for you.