Online marketplace regulator TCCT planning to enact fresh measures to restrict e-commerce titans, safeguarding the interests of small-scale merchants.

The Trade Competition Commission of Thailand (TCCT) has proposed a new set of rules for the e-commerce sector, aiming to prevent small retailers from being squeezed out by dominant platforms. The draft guideline, open for public consultation until September 18, targets unfair fees and forced logistics, and aims to prevent market dominance and anti-competitive practices.

The guidelines aim to ensure transparent enforcement of competition law, reduce excessive discretionary power, and explicitly define the term algorithm, which lies at the heart of platform systems. The new framework, based on Sections 54-58 of the Trade Competition Act, with a focus on Section 58 which regulates unfair practices by dominant players, seeks to ensure fair competition, protect consumer rights, and align Thailand with international standards.

Small retailers in Thailand are facing commission fees of 15-25%, but are left with margins of less than 10%. This has forced many to shut down. The draft regulation provides clear rules for online platforms, particularly those linking multiple parties such as sellers, logistics providers, and other service operators.

The TCCT is concerned about unfair practices such as excessive commission cuts, exclusive logistics arrangements, and cross-platform data exploitation. Sutham Yoonaitham, TCCT vice-chairman, emphasized the need for ex-ante preventive measures instead of ex-post regulation.

Platforms like Shopee have taken control of the entire system, including consumer data, logistics, advertising channels, and financial flows. Specific prohibited practices include forcing shops to set minimum prices, downgrading shops that do not buy advertising, simultaneous fee hikes without coordination, and exploiting sellers' data to benefit the platform's own businesses.

To address these issues, the draft guideline imposes strict rules on logistics. Platforms are banned from requiring sellers to use only their fulfilment or delivery services, restricting access to third-party logistics providers, or charging hidden shipping fees. Songpol Suwanpong, assistant secretary to the Attorney General, recommends allowing sellers the freedom to choose their own logistics providers, with at least three options available.

Songpol Suwanpong also proposes setting a cap on commission fees to prevent sellers from shouldering excessive costs. The guideline sets out four key principles: business must be conducted fairly, discrimination or exclusion is prohibited, business conditions must be justifiable, and market competition must not be diminished.

Pawoot Pongvitayapanu, adviser and honorary president of the Thailand E-commerce Association, warned that Thailand's e-commerce market is being dominated by foreign platforms like Shopee, Lazada, and TikTok Shop. He emphasized the need for regulations to level the playing field and protect local businesses.

The draft guideline on unfair trade practices and monopolistic behaviour in e-commerce is open for public consultation until September 18. The search results do not provide the name of the person who will issue the new directive on unfair trading practices and monopolistic behavior in e-commerce in October 2025. Violators could face criminal penalties under the Trade Competition Act.

Songpol Suwanpong suggests refining the legal language, especially in cases where the term "and/or" appears between provisions, as it may cause confusion. The TCCT draft guideline targets not only unfair fees and forced logistics, but also aims to ensure fair competition and protect consumer rights in the e-commerce sector.

Online marketplace regulator TCCT planning to enact fresh measures to restrict e-commerce titans, safeguarding the interests of small-scale merchants.