Former TCCT Secretary on Shopee 3.47 Million Baht Fine

Matichon•Economy•14d ago

Reader Briefing

Former TCCT Secretary Witsanu Wongsinshirikul raised concerns regarding the legal basis and personal liability in the TCCT's ruling to fine Shopee 3,472,488.50 Baht.

•The TCCT fined Shopee 3,472,488.50 Baht for enrolling shops in promotions without prior notice or consent.
•Witsanu Wongsinshirikul questioned the use of Section 57 instead of Section 50 regarding dominant market power.
•Witsanu Wongsinshirikul raised concerns that only the legal entity was punished, not the individual decision-makers under Section 84.
•The behaviors in the case occurred between June 2020 and August 2021.

Overview

•The Trade Competition Commission Thailand (TCCT) ordered an administrative fine of 3,472,488.50 Baht against Shopee for enrolling merchants in sales promotions without consent.
•The behaviors subject to the case occurred continuously from approximately June 2020 to August 2021.
•Data from 2020 indicated Shopee had a market share of approximately 44.49%, while the top three operators combined had a market share of approximately 95.31%.
•Witsanu Wongsinshirikul questioned why the TCCT applied Section 57 regarding unfair trade practices instead of Section 50 regarding the abuse of dominant market power.
•Witsanu Wongsinshirikul noted that Section 50 carries harsher penalties, including potential imprisonment, compared to the administrative fines of Section 57.
•Witsanu Wongsinshirikul expressed concern that the ruling may create a precedent for future cases involving other large business operators across various industries.
•Witsanu Wongsinshirikul suggested verifying if the investigation sufficiently traced approval paths to identify responsible individuals under Section 84.
•Witsanu Wongsinshirikul noted that administrative penalties may lead to lengthy Administrative Court processes, leaving affected merchants facing impacts during the proceedings.

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Key Quotes

Witsanu Wongsinshirikul

"I am not concluding whether it is right or wrong, but the question arises: when the criteria for a dominant market power are met, why use the criteria for market power?"

ผมไม่ได้ฟันธงว่าถูกหรือผิด แต่มันเกิดคำถามว่า เมื่อเข้าหลักเกณฑ์ของผู้มีอำนาจเหนือตลาด ทำไมถึงไปใช้หลักเกณฑ์ของผู้มีอำนาจตลาด

Witsanu Wongsinshirikul

"The ruling punishes only the legal entity, so the question arises whether the investigation process sufficiently checked the decision-makers or responsible persons according to the principles of Section 84."

ผลคำวินิจฉัยนี้ลงโทษเฉพาะนิติบุคคล จึงเกิดคำถามว่า กระบวนการสอบสวนได้ตรวจสอบไปถึงผู้มีอำนาจตัดสินใจหรือผู้มีหน้าที่รับผิดชอบตามหลักของมาตรา 84 อย่างเพียงพอแล้วหรือไม่

Key Entities

Person

Witsanu Wongsinshirikul(วิษณุ วงศ์สินศิริกุล)

Former Member and Secretary-General of the Trade Competition Commission Thailand.

Organization

Trade Competition Commission Thailand(กขค.)

The regulatory body that issued the administrative fine against Shopee.

Shopeeℹ️

The company fined for enrolling merchants in promotions without prior notice or consent.

Law

Section 50(มาตรา 50)

Law concerning business operators with dominant market power.

Section 57(มาตรา 57)

Law concerning unfair trade practices.

Section 84(มาตรา 84)

Law concerning the liability of individuals when a legal entity commits an offense.

Section 72(มาตรา 72)

Law specifying penalties for the abuse of dominant market power under Section 50.

Section 82(มาตรา 82)

Law specifying administrative fines for offenses under Section 57.

Policy

TCCT Notification on Criteria for Business Operators with Dominant Market Power 2018(ประกาศ กขค. เรื่องหลักเกณฑ์การเป็นผู้ประกอบธุรกิจซึ่งมีอำนาจเหนือตลาด พ.ศ. 2561)

The 2018 criteria used to determine if a business operator has dominant market power.