Nandana Indananda
Small-scale or low-impact digital platform service providers have different legal responsibilities than other types of service providers. Generally, they are exempt from notifying the ETDA before conducting business, but they still have legal responsibilities, such as submitting a brief list of information, appointing a domestic coordinator, reporting annually, and notifying the ETDA of business termination. It is important for these providers to regularly monitor their commercial activities on the internet to ensure compliance with the law. They should be aware that their status may change to that of a general digital platform service provider with greater legal obligations if their income or number of users exceeds the legal threshold or if there is a change in their business model. |
The digital platform laws have defined the responsibilities of digital platform service providers who provide services to users in Thailand. The term "small-scale or low-impact digital platform provider" is not mentioned in the Digital Platform Law or the Royal Decree on Digital Platform Business Operation, but it is mentioned in the notification of the Electronic Transactions Development Agency. This article explains who the small-scale or low-impact digital platform service providers are and what their legal responsibilities are.
Definition of Small-scale or low-impact Digital Platform Service Providers
First of all, it should be noted that the term "small-scale or low-impact digital platform provider" does not appear in the Digital Platform Law or the Royal Decree on Digital Platform Business Operation. However, this term is mentioned in the notification of the Electronic Transactions Development Agency regarding the notification of digital platform business operation, which requires small-scale or low-impact digital platform providers to submit a data list declaration to the Electronic Transactions Development Agency before commencing business operation.
Digital platform service providers with an average of no more than 5,000 users per month and whose revenue before deducting expenses from providing services in Thailand does not exceed 50 million baht per year, in the case of a juristic person, or 1.8 million baht per year, in the case of an individual.
Website or application service providers that are solely used to offer goods or services of the provider (E-service) and have an average of more than 5,000 users per month or whose revenue before deducting expenses from providing services in Thailand exceeds 50 million baht per year, in the case of a juristic person, or 1.8 million baht per year, in the case of an individual, but also provide digital platform services that have the following characteristics:
Web board service that is used exclusively as a channel for providing assistance to users for inquiries or information related to the use of the services through the website or application.
Link or banner display service of data location (Hyperlinks/Banner) to facilitate access to other digital platforms or websites for users.
Responsibilities of Small-scale or low-impact Digital Platform Service Providers
Both types of digital platform providers are considered "small or low-impact digital platforms," so it is not necessary to notify the ETDA before starting a business. However, these service providers still have legal responsibilities as follows:
The duty to notify a brief list of information before starting a business. Service providers who have been providing services before August 20, 2023, must submit a a brief list of information to the ETDA by August 20, 2024, or within 1 year from the date when the Royal Decree becomes effective.
The duty to appoint a coordinator within the Kingdom (in case the business operator operates outside the Kingdom).
The duty to report a brief list of information annually (including information about the total number of users and the number of users in each category) within 60 days from the end of the calendar year for individuals, or within 60 days from the end of the fiscal year for corporations.
The duty to notify the ETDA of the intention to terminate the business at least 30 days in advance before the termination date.
In addition, E-service providers who offer products or services on their website or application that have web boards must have measures to control and monitor the use of the web boards to provide assistance to users who have questions or need information about the service only through the website or application. Providers who display hyperlinks or banners of information must have measures to control, monitor, or manage them to prevent the presentation of hyperlinks or banners that violate the law.
While small-scale or low-impact digital platform service providers may not be obligated to notify their business operations or comply with other criteria set by digital platform notifications, it is important to keep in mind that their status may change to that of a general digital platform service provider with greater legal obligations. This can happen if their income from business operations or number of users exceeds the legal threshold, or if there is a change in their business model that removes exemptions from the obligation to notify business operations. Therefore, digital platform business operators have a responsibility to regularly monitor their own commercial activities on the internet to ensure timely and appropriate compliance with the law.