Thailand to Establish New Panel to Oversee E-commerce Fees, Focusing on SME Protection

The Trade Competition Commission of Thailand (TCCT) plans to establish a subcommittee to oversee the commission fee practices of e-commerce platforms. This move aims to address growing concerns among Thai merchants, particularly small and medium-sized enterprises (SMEs), over high commission rates charged by these platforms. The subcommittee, which will have a maximum of 10 members, is expected to include representatives from the Department of Internal Trade, the Office of Small and Medium Enterprises Promotion, and academic specialists, according to Assoc Prof Sudharma Yoonaidharma, vice-chairman of the TCCT. The commission is scheduled to hold a meeting on July 6 to discuss clearer criteria for appointing subcommittee members. The subcommittee is expected to oversee business-to-business issues, involving e-commerce platforms such as online marketplaces and the sellers who use them. Consumer protection cases, such as products not matching their descriptions, remain the responsibility of the Office of the Consumer Protection Board. Pol Lt Gen Pittaya Siriraksa, commissioner at TCCT, said the subcommittee is meant to facilitate discussions with e-commerce operators regarding their business practices. In addition, the panel will remind platform operators that their practices must comply with relevant regulations, he noted, while promoting awareness of best practices and educating stakeholders about guidelines. The subcommittee may review and suggest revisions to guidelines when necessary, said Pol Lt Gen Pittaya. In May, Digital Economy and Society (DES) Minister Chaichanok Chidchob said the Commerce and DES ministries plan to hold talks on gross profit (GP) charges of e-commerce platforms in Thailand, as the quoted rate of around 30% was deemed too high. There is growing concern among Thai merchants, particularly small and medium-sized enterprises (SMEs), over rising GP fees, which many businesses say erode thin profit margins, noted the DES Ministry. Mr Chaichanok said earlier a GP rate of 30% is excessive, and a range of 10-15% would be more appropriate in supporting Thai entrepreneurs. Some parties have warned against setting fees too low as platform operators need sustainable revenue models to maintain long-term business viability, he said. "The challenge is finding the right balance between supporting entrepreneurs, maintaining incentives for platform operators, and preserving market mechanisms," said Mr Chaichanok. Assoc Prof Sudharma said the TCCT also intends to establish a subcommittee to oversee issues related to community marketplaces. Concerns often arise when modern trade operators from outside the community enter local markets, potentially harming traditional businesses or failing to source local products, thereby affecting local producers, he noted. The proposed subcommittee would develop guidelines for community marketplaces. In addition to overseeing trade competition, it would consider the responsibilities of modern trade operators towards local communities, said Assoc Prof Sudharma. The subcommittee is expected to include representatives from the Federation of Thai SMEs, the Commerce and Industry ministries, and academic specialists.