The global digital platform economy is experiencing rapid and continuous growth. However, in Thailand, consumers face numerous challenges when using digital platform services, including online scams and receiving goods that do not match advertised descriptions. To address these issues and enhance regulatory mechanisms tailored to specific problems, Platform Economy Bill (“Bill”) has been introduced. The proposed legislation is expected to feature two primary components:
1. User Protection Measures: The Bill aims to protect users by establishing obligations based on the size and risk level of intermediary service providers and their impact on users, the economy, and the society. The Electronic Transactions Development Agency (ETDA) is designated as the lead authority for overseeing these user protection provisions. The Bill outlines a three-tier classification system for digital platform service providers, ranked by the extent of their obligations:
- Intermediary service providers are entities that serve as connectors, enabling the exchange of information through computer networks, the internet, or telecommunications systems.
- Online platforms are service providers that offer storage and connection services, allowing users to engage in transactions or interactions. These platforms may also provide additional features to enhance user engagement, either free of charge or for a fee.
- Very Large Online Platforms are those that wield significant impact on Thailand’s economy or society.
2. Fair Competition: The Bill also seeks to regulate “gatekeepers” which are dominant market players that control access to goods, services, or markets. The Trade Competition Commission of Thailand (TCCT) will oversee the fair competition provisions of the law. Key regulatory measures involve identifying whether a platform qualifies as a Core Platform Service (CPS), such as social networking sites, virtual assistants, or online search engines. This includes assessing qualitative factors like its significant impact on Thailand’s economy or society, its role as a vital gateway for businesses to reach end-users, and its stable and dominant market position. Quantitative factors, such as the platform’s size, global user base, and consumer switching costs, are also evaluated.
Feedback on the principles of the Bill will be received until 15 December 2024.