LEGAL ISSUES REGARDING THE APPROVAL OF A MERGER IN THE TELECOMMUNICATION BUSINESS

Abstract

Abstract

         This study endeavored to explore the conceptual and theoretical underpinnings pertaining to mergers within the telecommunications industry. It also examined the regulatory authority vested in relevant state agencies, as well as the criteria established by such entities to authorize mergers of telecommunications organizations, both domestically in Thailand and internationally. Employing a qualitative research methodology, this descriptive study amalgamated insights from diverse sources, including legal texts, academic literature, and pertinent research papers, to analyze the legal ramifications surrounding the sanctioning of mergers in Thailand's telecommunications sector.

          The findings of the study revealed an apparent discrepancy between the criteria for authorizing mergers of telecommunications businesses, as stipulated in the announcement titled “Preventive Measures of Monopolization and Unfair Trade Practices in the Telecommunication Business B.E. 2549” issued by the Telecommunication and Broadcasting Committee (TBC), and the authorization granted for the merger between True Corporation PLC and Total Access Communication PLC. The crux of the issue lies in the interpretation of the phrase “running the business in the same category.” Despite the merger's conformity with the definition provided in clause 3(1) of the aforementioned announcement, the TBC, through a majority vote, acknowledged the merger without explicitly authorizing or rejecting it. Furthermore, upon examining the distribution of regulatory powers, it was discovered that the NTBC wields sole authority in sanctioning such mergers. Consequently, the study recommends the implementation of a system of checks and balances among the entities involved in the merger process within the telecommunication sector.