Thailand has initiated the public hearing phase for the Digital Platform Economy Act, a transformative legislation designed to regulate the burgeoning digital platform sector and safeguard economic and social integrity.
The draft, collaboratively developed by key government agencies, including the Electronic Transactions Development Agency (ETDA), the Council of State, and the Trade Competition Commission of Thailand (TCCT), commenced on January 15 and will conclude on February 16.
Main Objectives of the Legislation
This law aims to advance social and economic progress, enhance public trust in electronic data systems, and mitigate potential risks to the public.
It outlines specific responsibilities for digital platforms based on their classification and scale, focusing on consumer protection, fostering fair competition, and promoting self-regulation in alignment with governance principles.
The law will take effect 180 days after its publication in the Royal Gazette.
The enforcement of this legislation will be jointly managed by the Digital Economy and Society Ministry and the Commerce Ministry, each tasked with distinct responsibilities.
The draft mandates the formation of a digital platform economy committee responsible for developing policies that regulate and promote digital platforms.
The committee chairman, appointed by the cabinet, must possess substantial knowledge and experience in the digital economy.
Duties and Responsibilities of Digital Platforms
Defined within the draft are various categories of digital intermediary services, including mere conduit, caching, hosting, and others.
Digital platforms facilitating transactions among users are classified as digital platform services.
Under the law, digital platforms are required to designate a representative to liaise with ETDA.
Key responsibilities for platforms include informing users about their rights and obligations under the law and the implications of non-compliance.
Additionally, platforms must establish an electronic complaint system that offers responses within 24 hours and updates the complainant on investigation outcomes within 60 days.
Significant digital platform providers are characterized by criteria such as annual revenue exceeding 1 billion baht or over 6 million users per month, and those whose services could pose socio-economic risks.
Such providers are obligated to report specific data, including transaction values, to the digital platform economy committee, extending this requirement to foreign providers operating in Thailand.
Legal Perspectives on the Draft
Experts note that the Digital Platform Economy Act draws inspiration from international regulatory frameworks, aiming to comprehensively govern digital intermediaries and platform services beyond existing regulations.
The draft introduces rigorous obligations for service providers, emphasizing both consumer safety and competitive integrity, with non-compliance potentially resulting in significant fines based on global revenue.
Replacing the previous Royal Decree on Digital Platform Services, this new law will serve as a comprehensive regulatory framework for digital services calling for scrutiny across various sectors.
Potential Concerns and Overlaps
Industry experts have raised concerns regarding the clarity and breadth of obligations imposed on digital platforms, suggesting that certain requirements might inhibit innovation.
Provisions concerning account and application interoperability might necessitate platforms to dilute proprietary systems, thus stifling distinctive offerings.
Concerns also extend to potential regulatory overlap with existing competition and data protection laws, highlighting the necessity for clear guidelines to prevent inconsistencies.
