The Substantial Lessening of Competition Test for Mergers Under the Trade Competition Act B.E. 2560: Lessons from The United States, European Union, Japan, and Singapore

Abstract

Testing for a substantial lessening of competition is a concept that has been widely accepted and applied in the supervision of mergers, for example, in the United States, European Union, Japan, and Singapore, as well as in Thailand. However, this study reveals that the process to assess which mergers may result in a substantial lessening of competition is significantly different in Thailand in comparison to the other countries mentioned earlier. The detailed and complex process in foreign countries, results in the supervision of mergers based on the concept of substantially lessening competition being correct and efficient. This is different from the legal procedure of competition law in Thailand which is simple and explicit, but may lead to a distorted outcome, making the supervision of mergers according to Thailand competition law inefficient. Therefore, consideration should be given to improving the supervision of mergers, based on the concept of substantially lessening competition under the Trade Competition Act B.E. 2560 (2017), in order to apply procedures correctly, meet objectives, and follow best practices, as demonstrated in the competition law of the United States, European Union, Japan, and Singapore.