AP Honda is likely to face charges of having violated the Trade Competition Act if public prosecutors decide to go ahead with the case following yesterday's decision by the Trade Competition Committee.
The case, involving the company's policy to bar motorcycle dealers from selling brands other than Honda, will go to the public prosecutors soon, Commerce permanent secretary Yanyong Phuangrach said after the committee's meeting, which was chaired by Commerce Minister Porntiva Nakasai.
"It would be the first case in which the government had lodged a lawsuit against private firms for breaching the law. It shows big progress in law enforcement against any firms engaging in unfair behaviour," said Yanyong.
Article 25 of the Trade Competition Act focuses on market dominance. Violators face three years' imprisonment and/or a Bt6-million fine.
However, Police Lt-Colonel Mana Pochuay, the lead investigator, said it remained uncertain whether prosecutors would take action following the Trade Competition Committee's finding against AP Honda.
If prosecutors saw the need for more evidence, the panel would have to launch a further investigation, he said.
The committee originally filed the case with prosecutors in 2003, but they asked for further investigation of the matter.
Yesterday's decision came after 12 meetings and the interro-gation of 23 witnesses, which involved 2,000 pages of documents.
The case was launched in 2001 by Kawasaki Motor Enterprises, Thai Suzuki Motor and Thai Yamaha Motor, who charged that AP Honda - the country's largest motorcycle distributor - had forced its agents to sell only Honda bikes and persuaded them to stop selling other brands.
Meanwhile, the committee at its next meeting will set up a special panel to investigate three other cases in greater depth: Thai Beverage, for price dumping and unfair pooling; a printing company's monopoly of the market; and the price dumping of packed rice in modern trade outlets.
