Regulation of Holding Companies under the Trade Competition Act B.E. 2560

Abstract

This research aims to examine the regulation of holding companies under the Trade Competition Act B.E. 2560 (2017) through a comparative analysis with foreign laws and practices to propose appropriate legislative reforms for Thailand. The research employs a documentary research methodology, conducting comparative analyses of statutory provisions, regulatory practices, and judicial decisions concerning holding company regulation under the competition laws of the United States, the European Union, and the Republic of Korea.

The findings reveal significant limitations in Thailand’s competition law regarding holding company regulation, as the definition of “business operator” is restricted to direct business operators, thus failing to encompass holding companies that, despite controlling subsidiaries, do not directly engage in business operations. In contrast, foreign jurisdictions either broadly interpret their laws to include companies exert influence over other businesses’ operations or maintain specific provisions for holding company regulation. This research proposes amendments to the definition of “business operator” to include companies that exercise control or significant influence over other business operators. Additionally, it recommends improvements to the notification concerning criteria for determining policy relationships or controlling power and the establishment of clear guidelines for assessing the control and liability of holding companies. These recommendations aim to enhance regulatory effectiveness and align with international standards.