A Study on Divestiture under Competition Laws of Thailand

Abstract

Sections 60 and 52 of the Competition Act B.E. 2560 empowers the Trade Competition Commission of Thailand (TCCT) to widely impose both behavioural and structural measures to remedy the damage from trade competition. Such structural remedy may be in the form of partial and full divestiture. The order imposed to divest the business of the business operators is significantly severe and has the most negative effect on them. The TCCT should therefore carefully establishes the criteria for imposing and enforcing such order. This is to ensure that the measure is being laid down thoroughly, without exercising discretionary power, and that all cases are fairly treated. Once the criteria are established, they will also deter any potential wrongdoers from breaching competition law.

            This article studies the character of the trade competition remedies, especially partial and full divestiture, and the factors to be considered when imposing them. Together with the Competition Act and other relevant regulations, the article analyses the criteria applied to impose trade competition remedies, the structural remedy in particular, in foreign countries. The analysis aims to provide a conclusion and recommendation on establishing the criteria for instituting the trade competition structural remedy by way of a partial or full divestiture.