Following the Cabinet’s approval of the draft law on Tuesday, the bill will soon pass to the National Legislative Assembly for ratification, followed by announcement in the Royal Gazette for implementation next year.

Nuntawan Sakuntanaga, director-general of the Internal Trade Department, said yesterday that the ministry was confident that the new law would help prevent unfair practices among businesses, encourage the conduct of business based on fair practice, and promote more investment in the country.

After the law is implemented, members of a new independent body free of political intervention will be nominated by representatives of all involved sectors – including government agencies, private organisations and academics – to handle complaints related to competition.

The new Office of Trade Competition Commission will comprise a chairman, vice chairman and five committees.

Under the draft legislation, the commission will effectively regulate market dominance, mergers and acquisitions, cartels and other unfair trade practices.

The draft law adjusts the punishment for businesses that breach the law on market dominance from three years in jail and fine of Bt6 million, to three years in jail and a fine of at least 10 per cent of their income.

In the case of mergers and acquisitions, the fine for breaching the law will be increased from a maximum of Bt6 million currently, to at least Bt200,000 per day.

For cartels and other unfair trade practices, punishments will increase from three years in jail and maximum fine of Bt6 million, to three years in jail and a fine of at least 10 per cent of each party’s business income.

The bill also expands the law to cover all state enterprises and their subsidiaries involved in business activities.

Anyone will be able to sue such state agencies, but if those agencies do business based on the public benefit or under specific instruction by the Cabinet under government policies concerning the public, those activities would be exempted under the law.

Meanwhile, the Internal Trade Department is stringently monitoring the price of sand-sacks during the current flooding in many provinces, Nuntawan said.

The retail price for each 15-kilogram sack should be Bt25-Bt30, she said, adding that if any overcharging is experienced, consumers should complain to the department.