The National Reform Council is seeking to overhaul the Trade Competition Commission in a bid to rid it of political influence and break business monopolies.
A shopper uses an escalator at a supermarket in Bangkok. The National Reform Council seeks to overhaul the Trade Competition Commission in a bid to rid it of political influence and break business monopolies.(Photo by Patipat Janthong)
The move is part of multiple proposals raised by the panel on agriculture, industry, commerce, tourism and service reforms.
Panel chairman Krirk-Krai Jirapaet told a recent NRC meeting that the 1999 Trade Competition Act is meant to ensure fair competition and stop monopolies. But enforcement of the law is impractical, he said, so the Trade Competition Commission must be overhauled to shore it up against interference from politicians and interest groups.
NRC member Jit Siratranont said the Trade Competition Act must be amended to support the commission’s independence. The commission should play a key role in promoting trade competition rather than simply chasing violators, Mr Jit said.
Other proposals include redefining business operators under the act to cover their subsidiaries; forcing state enterprises competing with private companies to be regulated under the act; and strengthening legal powers over government policies that harm competitiveness and treat customers unfairly.
NRC member Alongkorn Ponlaboot said politicians, powerful business operators and state officials are to blame for monopolistic practices.
Political groups receive financial support from big conglomerates and they then work together to prevent enforcement of the law, he said.
State officials do not dare take legal action against companies because some will offer them advisory or executive roles when they retire, Mr Alongkorn added.
NRC member Jermsak Pinthong said one flaw in the act is that the chairman of the Trade Competition Commission is also the commerce minister.
He said the proposal supports the commission’s independence, but warned interference in independent bodies has been going on since the 1997 charter.
“In addition to amendment of the law, questions must be asked about how the problem of politicians can be dealt with,” Mr Jermsak said. “Monopolies are behind political parties and some of them are hiding within the parties.”
NRC member Rosana Tositrakul expressed concern about the impact of large wholesale and retail superstores on local businesses.
She said small groceries are vanishing as superstores spread their reach across the country, suggesting that zoning be used to limit the number of large shops.