Nandana Indananda
The Royal Decree on Digital Platform in Thailand defines digital platform businesses as online electronic intermediaries that connect businesses with consumers to facilitate electronic transactions. This encompasses not only large e-marketplaces like Amazon and eBay but also any website or application that connects businesses with consumers for buying and selling goods or services, such as insurance brokers or real estate brokers. Digital platform providers are required to comply with the law, with small-scale providers obligated to report their business operations to the Electronic Transactions Development Agency (ETDA) within one year of the law's effective date and general digital platform providers required to report within 90 days. Therefore, website and application service providers in Thailand should determine if their service falls under the digital platform category and prepare to comply with the responsibilities outlined in the law.
In today's business world, "platforms" are an important tool for conducting business. Most businesses use platforms to sell their products or services to customers. Meanwhile, many businesses also try to create their own platforms as a way for other businesses to offer their products and services. Platforms are like a marketplace where goods and services are offered for sale to consumers. When this market is on the internet, we call it an "online platform" or "digital platform". This article explains which type of platform has the obligation to comply with the Digital Platform Law.
Definition of Digital Platform Business
The Royal Decree on Digital Platform defines a "digital platform business" as an online electronic intermediary that connects businesses with consumers to facilitate electronic transactions. This means that a digital platform can come in the form of a website or various applications. When consumers access the internet, they can browse and use these websites or applications to select and purchase products or services. Online marketplaces, also known as e-marketplaces, such as Amazon, Alibaba, or eBay, are the prime examples of "digital platforms" on a global level. |
Various Types of Digital Platform
According to the above definition, a "digital platform" is not limited to just large E-marketplaces. Any service that involves connecting businesses with consumers for the purpose of buying and selling goods or services is considered a "digital platform" under the law. With such a broad scope, any website or application that does not sell its own goods or services but provides an opportunity for others to do so will also be considered a "digital platform." Examples include insurance brokers that connect insurance companies with customers and real estate brokers that connect property sellers with buyers.
Furthermore, services like booking flights and hotels, consulting with doctors online, hiring technicians and masseuses, finding tutors and cargo transporters, reading e-books, and even receiving online fortune telling services, as well as reviewing restaurants or tourist attractions and renting cars, are all categorized as "digital platforms." Additionally, websites featuring discussion boards that allow business owners or consumers to communicate directly, or those containing hyperlinks or banners that advertise other businesses, are also considered digital platforms.
Duties of Digital Platform Providers
If these digital platforms provide services to users in Thailand, the service providers are required to comply with the Royal Decree on Digital Platform. Digital platforms can be divided into two main categories: small-scale service providers or those with low impact and general digital platform service providers. The former has the responsibility to report information about their business operations to the Electronic Transactions Development Agency (ETDA) before starting their business. This law requires all digital platform service providers to report their business operations to the ETDA within one year from the effective date of the law, which is August 20, 2024. However, general digital platform service providers must report their business operations within 90 days from the effective date of the law, which is November 17, 2023. Therefore, website and application service providers should check whether their service falls under the category of "digital platform" and prepare to report their business operations and comply with the responsibilities specified in this law.