Mandating registered offices for foreign e-commerce operators and implementing new regulations aim to promote fair competition and enhance market integrity.

Thailand is set to implement new regulations requiring foreign e-commerce operators to establish registered offices within the country under the forthcoming digital platform service law. This move, announced by the Electronic Transactions Development Agency (ETDA), is part of a broader effort to address the surge of inexpensive products entering Thailand from China via e-commerce platforms.

The ETDA, in collaboration with the Department of Trade Negotiations, is ensuring that the new requirements will not conflict with any existing trade agreements. The law, which targets digital platform operators of a specified size, mandates that they provide key operational information to the ETDA before commencing business activities in Thailand. A new clause in the law will also compel these operators to officially register within the country.

This regulatory push comes in response to the growing influence of foreign e-commerce platforms, particularly those from China, which have been flooding the Thai market with low-cost goods. The ETDA has already seen compliance from over 1,400 digital platform service operators. In addition to registration requirements, Thailand’s Trade Competition Commission is closely monitoring business practices to prevent unfair competition. The commission is particularly focused on combating predatory pricing and other forms of risky business behavior. Violators may face severe penalties, including imprisonment of up to two years and fines reaching 10% of their annual revenue.

In a related development, the Thai government recently revoked the value-added tax (VAT) exemption for imported goods valued below 1,500 baht, effective from July 5. This measure aims to level the playing field between imported goods and those produced by local small and medium-sized enterprises.

These regulatory changes mark a significant shift in Thailand’s approach to managing the impact of foreign e-commerce platforms and are likely to have wide-ranging implications for the country’s digital economy.