Filing of a Lawsuit for Damages According to the Thailand Trade Competition Act

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Filing of a Lawsuit for Damages According to the Thailand Trade Competition Act

The Thailand Trade Competition Act B.E. 2560 (2017) (Trade Competition Act) established the Trade Competition Commission of Thailand (TCCT) as an independent governmental body to regulate market behaviours and impose guidelines in order to promote a competitive market environment in Thailand. The key objective of the Competition Act is to prevent monopolies and allow the market to grow freely and fairly without unfair domination by large business operating groups, such as merging of business between the two major retail businesses. The law allows business operators suffering from breaching of the law by other business operators to file a lawsuit claiming for damages.

Criteria

The Trade Competition Act has established the following criteria for filing a lawsuit claiming for damages:

  1. The right to claim damages by filing a lawsuit to the court will be under the following criteria.
    • Abusing of a dominant position;
    • Conducting a merger that may cause a monopoly in a dominant position in a market with no permission from the TCCT;
    • Conducting cartel or bid-riggings;
    • Unfairly obstructing or hindering the business operations of other business operators through abusive exploitation of dominant positions or bargaining leverage against others; or
    • Conducting an agreement with foreign firms that harms competition and consumption in an unjustified manner.

However, the Trade Competition Act does not stipulate whether the damages be claimed will be actual damages or punitive damages. Moreover, there is no existing court precedent concerning this issue has been rendered. Therefore, the method to determine scope of liability in terms of damages according to the Trade Competition Act must be referenced by the method used for wrongful acts under the Civil and Commercial Code which shall depend on the circumstances and gravity of the wrongful act and the damages as claimed must be the actual one.

  1. In term of the period of legal prescription, it is limited to one year as from the date that the injured person becomes aware of the violation or should have become aware of the violation, otherwise the right to file a lawsuit to the court will be lapsed.
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Eligible Parties

Civil lawsuits claiming for damages can be brought to the  Central Intellectual Property and International Trade Court (IP Court).

The eligible party that can file a lawsuit to the IP court is a person or business operator who suffers damages under the criteria as above mentioned. The Trade Competition Act also adds another approach granting the power to the TCCT and associations or foundations recognized by the TCCT (e.g. the Office of the Consumer Protection Board in various districts in Bangkok (Phaya Thai, Lak Song, etc.). These entities have the power to file lawsuits claiming damages on behalf of consumers or members of the associations or foundations.

brown and white concrete building

Jurisdiction over the Case

The competent court having jurisdiction over lawsuits related to the Trade Competition Act is IP Court. Even though IP Court has jurisdiction over lawsuits concerning the Trade Competition Act, there is no case regarding this issue brought to the attention of the IP Court. The cases were settled during consideration of TCCT which administrative fines were imposed.

In conclusion, the Trade Competition Act provides a mechanism for injured person to seek damages from a person or business operator that commits violation of the Trade Competition Act. While the act itself does not clearly specify the method of determining the scope of liability, the general principle of law for civil liability will be applied.

Author: Panisa Suwanmatajarn, Managing Partner.

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