Nandana Indananda
Thailand has recently enacted a new law called the Royal Decree on the Operation of Digital Platform Services Subjected to Prior Notification, which regulates and controls digital platform businesses in Thailand. The law imposes various criteria that digital platform service providers must comply with and sets high criminal and administrative penalties for those who violate the law. Business operators who use digital platforms must be aware of their legal responsibilities and prepare to comply with the law before it takes effect on August 20, 2023. |
Recently, Thailand has enforced a new law that regulates digital platform business. This law imposes various criteria that digital platform service providers must comply with and sets high criminal and administrative penalties for violators. Business operators who use digital platforms must be aware of their legal responsibilities and prepare to comply with the law before it takes effect on August 20, 2023.
Digital Platform Business and its Implication
Digital platforms are online spaces where businesses and consumers can engage in commercial activities. Nowadays, online commerce is rapidly growing because consumers can conveniently search for and purchase products or services, and pay for them quickly and securely. This is made possible by intermediaries who facilitate transactions by providing platforms for businesses to sell their products and services, organizing and streamlining delivery services, and creating efficient payment systems. These digital spaces are called "Digital Platforms." |
To what extent the online trading on the internet has grown, digital platforms will play an increasingly important role in online commerce. Nowadays, business owners rely on digital platform service providers who act as intermediaries to bring buyers and sellers together in order to increase the chances of selling their products. It could be said that businesses that do not sell their products online will find it difficult to succeed.

One problem with using intermediaries in selling products or services is that sometimes digital platform service providers not only act as an intermediary but also sell their own products along with those of their users. In this case, the digital platform service provider has an advantage over other businesses because they can place their own products first, making it easier for buyers to see them. They may also set lower prices for their products or even manipulate the popularity rankings of stores, depending on which store has paid more for advertising.
In the European Union, the issues of unfairness and lack of transparency in online business operations have been increasing. In 2019, a law, called the "EU Regulation on platform-to-business relations" or commonly referred to as the "P2B Regulation" was enacted. The main objective of this law is to promote transparency and fairness in online business operations. It requires platform providers to have clear and easily understandable terms and conditions, and to ensure that business partners can fully understand these terms before or at the time of entering into a contract. Additionally, platform providers must clearly specify the conditions for suspending or terminating a contract, and if a contract is terminated, they must provide clear reasons for doing so. There are also other mechanisms in place to enforce compliance with the law, such as a mechanism for suspending disputes.
Thailand Digital Platform Law
The law, known as the Royal Decree on the Operation of Digital Platform Services Subjected to Prior Notification, was enacted on December 23, 2022. It regulates and controls digital platform businesses in Thailand, and has become a new regulation for digital business operations. This law has established various criteria that digital platform service providers must comply with, and has also set high criminal and administrative penalties for those who violate the law.
For example, the law requires providers of digital platforms to notify the competent authority before commencing their business operations. In addition, digital platform services that fall under the scope of the law must comply with all the regulations set forth in the law. Therefore, online business operators need to check whether their business is considered a digital platform service and what their legal responsibilities are. It is believed that there are many thousands of internet business operators who are subject to this law. Therefore, they must prepare to comply with this law before it takes effect on August 20, 2023, and follow the criteria specified by the law when it becomes enforceable.