The Trade Competition Board has voted to take legal action against a Chanthaburi-based dealer after an investigation found it had undercut the prices of fruit bought from farmers.
The verdict was sent to the suspect, who has five days to respond to the board, Boonyarit Kalayanamit, director-general of the Internal Trade Department, said on Monday after the board meeting chaired by Commerce Minister Sontirat Sontijirawong.
This is the first case where the board has taken legal action against the offender under the new Trade Competition Act. The name of the suspect was not disclosed.
The Trade Competition Act was published in the Royal Gazette on July 7, 2017 and went into force on Oct 5.
The new law includes expanded powers for the Trade Competition Board, making it independent from the government.
Other important provisions include a more detailed definition of a business operator with market dominance, plus changes on merger control, anti-competitive agreements, unfair trade practices and penalties and sanctions.
Penalties and sanctions are calculated as a percentage of the turnover of a business in the year the offence was committed; or, if a merger violates the law, a percentage of the value of the merger. This may cause penalties to be higher than the fixed maximum fine under certain circumstances.
Mr Boonyarit said the board has exercised Section 60 of the Act, which empowers the Trade Competition Board to issue an order in writing that business operators must suspend, stop or correct offences.
If businesses disagree with the order, they can seek clarity on the allegation, appeal, or file a lawsuit with the Administrative Court within 60 days of receiving the warning letter if they view the allegation as unfair.
He said the dealer was found to be in breach of Section 57 of the Act, which prohibits any business operator from undertaking any conduct resulting in damage on other business operators in of the following ways: (1) by unfairly obstructing the business operations of other business operators; (2) by unfairly utilising market power or bargaining power; (3) by unfairly setting trading conditions that restrict or prevent the business operation of others; (4) conduct that violates the commission's notifications.
Violators will be subject to an administrative fine of up to 6 million baht and a further fine of up to 300,000 baht a day if the violation continues.
In 2017 there were a total of 391 fruit dealers or gatherers registered as fruit and vegetable exporters with the Agriculture Department.