From the case Competition Commission (KKK) resolved to allow CP Retail Development Company Limited to merge business with Tesco Store (Thailand) Company Limited on November 6, 2020, arguing that the business combination Giving more market power but not a monopoly And need to integrate according to the business suitability
Today (24 February 2021) Foundation for Consumers In collaboration with the Biwithi Foundation Association of Rights and Environment Lawyers And consumer networks Jointly gave a press conference to explain the cause of damage from the said resolution To consumers Retailers, wholesalers, farmers and they have a huge impact on the overall economy. Free and fair competition Food security And social confidence in the government and the laws of the country
Prida Tiasuwan, former chairman of the law development subcommittee on fair trade and consumer protection (2008-2009), said in the opinion of the lawmakers that Market dominance occurs when one of the players in the market owns more than 50% of the market share. Because the authority is able to require manufacturers to sell their products to their groups at a lower price than their competitors. The power group can set the selling price in the market lower than its competitors. Resulting in a monopoly on that product
Therefore, the Trade Competition Committee divided the market into 3 parts: 1. Convenience stores 2. Hypermarkets 3. Wholesale stores were not necessary at all. Because the cheaper products are located in all 3 types of stores for the reasons above. The monopoly has already been established because there are people with more than 50% of the market share, so the competition commissioner has the duty and responsibility directly.
Prida continued that Consumer products (Grocery) are considered consumables that people will need to use every day. When a monopoly occurs, it must affect the stability of consumers. Society and country In the end, there will be an impact on life security. Affect the morale and mind of the people Worrying that the product will be raised for no reason or not Or there will be hoarding, etc. It ends with protests and riots.
Including the loss of competitiveness of companies wishing to become competitors Contrary to promoting potential growth of new investors (startups) according to government policy Not in accordance with the free trade mechanism There is a barrier to trade competition both within and outside the country of wholesalers. Product manufacturer And investors in the consumer industry Causing consumers to lose the opportunity to receive a variety of products At prices resulting from real competition
Witoon Lianchamrun, Director of the Biwithi Foundation Added that This resolution has implications for the country’s food security, making the agricultural sector dependent on food producers. And under the power to determine the type of agricultural product And the price of a single company with more than 80 percent of the market dominance, especially When the country is in crisis Consumer products are expensive. A clear example, for example, bananas are similar or higher in price than in European or American countries. Even though people have 5-11 times lower incomes, having market power Or a monopoly of any company In any way Will be an obstacle to lead the country through the crisis is difficult
That Lieutenant Somchai Ameen, a lawyer in the case, viewed that the resolution to allow companies with power over the market to merge. Contrary to the intent of the Trade Competition Act 2560 due to this interpretation It creates economic norms and law enforcement. Fraudulent legal interpretation that Over 80 percent of market dominance is “not considered a monopoly”, which may lead to similar monopoly behavior in other areas of business. Of the country in the future Make small business And consumers are ultimately affected.
Kochanuch Saeng stated that the director of the Consumer Foundation said that from the committee The majority of votes allowed the merger of Tesco Store (Thailand) Co., Ltd. and CP Retail Development Co., Ltd., as a result of this merger gave rise to the market dominance of Charoen Pokphand Group In retail and wholesale business More than 83.97 percent due to the Charoen Pokphand Group It is the major shareholder of CP All Company Limited and Siam Makro Company Limited with the highest share in the market. Therefore, it is a resolution contrary to the spirit of the Trade Competition Act 2017 stating that any business sector does not have more than 50 percent of the market power in businesses worth more than 1 billion baht and is against consumer rights. In choosing to purchase products and services According to the Consumer Protection Act 2522
“The COVID-19 situation can be seen that in many Areas with severe outbreaks The market will be closed. The restaurant closes on time People have no choice but to enter wholesale stores. Is the Makro department store instead of the market, entering the convenience store when the restaurant closes after 9 p.m. Currently, there are at least 5 provinces with only 7-11 convenience stores and Tesco Lotus. So you can see that These provinces have a 100% monopoly, leaving consumers with no choice in a crisis, ”Kochanuch said.
The Foundation therefore invites those affected by the Board’s resolution, including retail, wholesale associations or organizations, businessmen, consumer industrialists, farmers and general consumers who are consumers to join the plaintiffs to sue the committee. Much to the resolution To bring about correction And create good standards for free trade And consumer protection on March 15, the international day of consumer protection. You can follow the appointment details on the Foundation for Consumers page.
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