New competition law pleases smaller player
Star Sanitary, which holds a minor share of the Thai sanitaryware market, has welcomed a Cabinet decision about price fixing and anti-monopoly law.
Managing director Somchai Wongarun said the Cabinet's recent approval of changes to the Competition Act was "a step towards fairer competition", especially for smaller players. The revised Competition Act will state that any company with more than 50 per cent of the market and having a turnover of more than Bt1 billion should be regarded as dominant. The top three businesses in a market will be seen as dominant when they hold a combined share of 75 per cent and each has a turnover of Bt1 billion. The existing provisions of the Competition Act make it illegal for dominant market players to set unfair prices or trading conditions, limit the supply of goods to create shortages or intervene in other businesses without proper reasons. Until now, there has been controversy over the definition of market dominance. "It is obvious, from these revisions, that the top three market leaders in Thai sanitaryware market have violated the law," Somchai said, referring to his company's competitors - American Standard, Cotto and Karat. The Nation
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