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Nandana Indananda
The Royal Decree on the Operation of Digital Platform Service Business, also known as the Digital Platform Law, mandates that online businesses operating in Thailand must adhere to specific criteria and notify authorities to ensure transparency and fair practices for consumers. The law is modeled after EU laws that aim to prevent large technology companies from misusing their market power. The article provides an overview of the legal principles of the EU, including the Platform to Business Regulation and the Digital Services Act, and explains how they are relevant to Thailand's digital platform law. Additionally, the article outlines the responsibilities of digital platform providers and highlights the challenges they may encounter when attempting to comply with the law. |
Just before the end of 2022, Thailand passed an important law that can be considered a significant change in the way online businesses are conducted by entrepreneurs in the country. This law is the Royal Decree on Digital Platform Services, which requires notification to the authorities. This article explains the background and basic principles of this law.
The Royal Decree on the Operation of Digital Platform Services Subjected to Prior Notification, or the "Digital Platform Law" for short, is based on European Union laws, which aim to control Internet service providers from abusing market power. Therefore, legal criteria have been established to ensure that online businesses are transparent, fair, and protect consumer rights.
Concept of Thailand Digital Platform Law
Before explaining the various legal principles according to Thailand's digital platform laws, this article will first explain the legal principles in the European Union regarding the idea of leaving the European Union. In fact, the idea was an attempt to control large technology companies from the United States, which posed a significant threat to the European Union. All major platform service providers in the world are businesses with roots in the United States, whether it be online shopping services such as Amazon, social media providers such as Facebook, Twitter, and Instagram, or information search providers such as Google and video information providers like YouTube. These providers have power and influence over business operators who need to rely on these online platforms to sell their products in the European Union. Therefore, if these online platforms set unfair conditions for business operators who offer products or services, it will have a significant impact on the business sector in the European Union. |
Similarly, these platforms have a significant impact on consumers and the public, whether in politics or in choosing to consume products and services. These online platform providers can easily influence the decision-making direction of consumers. These issues are precisely why the European Union had to create three laws: the Platform to Business Regulation (P2B Regulation) to regulate and control service providers from setting unfair conditions and the Digital Services Act to regulate the relationship between service providers and their customers, as well as the Digital Markets Act to control the power of large online platform companies. |
The laws of the European Union aim to regulate and control large service providers that have a significant impact on the EU's economy. The P2B Regulation sets out requirements for platform providers to have clear and easily understandable terms and conditions with business users, and to notify them of any changes in service conditions prior to entering into contracts. Additionally, the regulation requires platform providers to have mechanisms for receiving complaints and resolving disputes. Measures used by the EU to control and regulate include rendering any agreements or conditions that do not comply with the law null and void and unenforceable.
The Digital Services Act aims to control illegal content by requiring service providers to appoint legal representatives, establish notice and action mechanisms, and resolve disputes. It also requires disclosure of key factors used to present information to consumers, such as advertising or product recommendations, in terms and conditions that apply to consumers. Additionally, platform providers are responsible for producing various types of reports, such as transparency reports and advertising reports, to the public.
The Royal Decree on Digital Platform Service Business Operation in Thailand is a law that was enacted using the authority under the Electronic Transactions Act B.E. 2544, Section 32, which requires the issuance of a Royal Decree to specify certain types of electronic transaction-related service businesses that must be notified, registered, or licensed.
In the case of operating a digital platform business, this Royal Decree requires business operators to notify the authorities before commencing their business and to comply with the criteria specified by the law and the Electronic Transactions Commission. Failure to notify the business operation carries a penalty of imprisonment for not more than one year or a fine of not more than 100,000 baht. Failure to comply with the specified criteria carries a penalty of a fine not exceeding 1 million baht.
Duties of Digital Platform Providers
Digital platform laws have mandated that businesses operating on digital platforms have responsibilities to notify the authorities and comply with the criteria specified in the law, such as providing information to the Electronic Transactions Development Agency and users, implementing measures as required, such as complaint handling and risk prevention measures, preparing reports for submission to the relevant authorities, appointing coordinators and personnel to comply with the law, and more. These responsibilities apply before, during, and after the business operations, and are crucially important. Business operators must also prepare Terms and Conditions that comply with the criteria specified in the law for both business users and consumers.
This version of Thailand's digital platform law combines the principles of both the European Union's P2B Regulation and Digital Services Act into one law. While the EU's laws aim to control the business practices of large businesses, Thailand's digital platform law covers both large and small businesses operating on digital platforms. Additionally, while the EU's laws do not have a system for businesses to report their operations to government agencies, they require businesses to ensure they operate in compliance with the law. Thailand's digital platform law, on the other hand, requires businesses to report their operations to government agencies and outlines the responsibilities of both businesses towards government agencies and towards consumers, whether the business is located in Thailand or abroad and providing services in Thailand. This poses a significant challenge for government agencies to have increased responsibilities.
Similarly, the digital platform business operators who fall under this law have a significant set of obligations. They must begin by assessing their platform type and responsibilities. Moreover, they have to ensure that agreements and terms and conditions affecting other business users and consumers adhere to the legal framework. These operators have to prepare various data for reporting to the Electronic Transaction Development Agency, besides implementing specific measures as required. Additionally, they must submit annual reports with essential information such as business revenue and the count of service users during that year to the Electronic Transaction Development Agency.
This digital platform law of Thailand has become a law that regulates and controls the business operations of platform service providers who provide services to users in Thailand. This makes business operators have more responsibilities under the law. At the same time, this law will help make business operations more transparent and promote fairness among business operators.