The National Legislative Assembly (NLA) has pushed through a bill to amend the Trade Competition Act to authorise a panel to decide whether to approve the merger of large companies with significant potential for market manipulation.
The lawmakers yesterday voted 200-0 to pass the bill in the third reading with four abstentions. The bill will pave the way for the establishment of a committee tasked with ensuring fair trade competition. The panel will have seven members with at least 10 years of experience in legal, economic, financial, industrial, administrative or consumer protection fields.
They must not hold any position in institutions or associations linked to business operators or groups of business operators that constitute a conflict of interest. The committee members have a four-year term, renewable for no more than two terms.
The panel has the authority to give related ministries suggestions in the drafting of decrees, rules and guidelines which can ensure fair trade competition as well as issue fines against violators.
The bill, when it becomes law, would see to an establishment of an office of the trade competition committee acting as a juristic person.
Under Section 51 of the bill, business operators are prohibited from merging in a way that can manipulate the market or markedly reduce competition, except where the deals are approved by the panel.
The clause was criticised by several business-linked lawmakers during the meeting, who said they feared red tape and possible interference from the mergers having to obtain prior permission from the committee.
They said mergers are normal practice by business operators to enhance competitiveness.
They insisted the clause, added by the NLA's subcommittee vetting the bill, could be detrimental to business operators who need to seek permission for mergers, during which process their trade secrets could be leaked.
The heated debate resulted in the meeting being temporarily suspended with NLA chairman Pornpetch Wichitcholchai asking the subcommittee to make changes to the clause in compliance with the concerns.