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Ministry to probe 80 firms suspected of market domination



In a surprising finding, the Commerce Ministry's Internal Trade Department said 70 manufacturers and 10 service-sector enterprises were highly likely to be unfairly monopolising their markets, in violation of the Trade Competition Act.

To ensure fair competition, the department said it would investigate the firms' structures to see whether they were monopolising the markets unfairly. 

The ministry plans to strengthen its efforts to determine whether firms have established a position of market dominance to ensure there is no harm being done to business growth in the long run, a senior commercial source said.

Market dominance is defined as having both a market share in the previous year of at least 50 per cent, and annual sales of at least Bt1 billion. 

A situation in which the three top players in a business have a combined market share of more than 75 per cent and annual sales of more than Bt1 billion is also defined as market dominance.  

Under the Trade Competition Act 1999, firms in a position of unfair market dominance as defined above are subject to three years' imprisonment, a fine of Bt6 million, or both. 

Traders found not to have arrived at dominance unfairly can continue operating their businesses as usual, said a source at the department. 

The department places operators at risk of market dominance in one of four market categories.

First is a single-market monopoly, such as a cable-television system operator. No businesses are currently listed in this category.

 The second category comprises firms in markets with few competitors. Fifty-one manufacturers and six service operators are on this list. 

 The third category is a partial market monopoly. It currently comprises manufacturers of 14 products and two service operators.

 The fourth category is for markets with many players.

Petchanet Pratruangkrai

The Nation



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