Business Combination Problem Under the Trade Competition ACT B.E.2542

Abstract

             This research aims to study economic and legal background and theories relating to business merger, including its principle, and its form, in order to identify the differences between legal measure in Thailand concerning the business merger of the business operator, for example, the Competition Act B.E. 2542, and the legal measure in foreign countries which aims to protect the market from monopoly or unfair competition. Furthermore, this research also focuses on comparative study of legal measures concerning the competition law in foreign countries and Competition Act B.E. 2542 in order to propose the recommendations to improve the enforcement of competition law of Thailand.
            According to the study, in Thailand, the business merger control has been prescribed in article 26 of Competition Act B.E. 2542 in order to control and prevent the business operator who intend to merge the business which can lead to monopoly or unfair market competition. Moreover, the business merger can be considered as one of the devices used by the business operator to get the market domination and eliminate other competitors. Therefore, the article 26 of Competition Act B.E. 2542 should be effectively and seriously enforced in order to examine the behavior and to control the business merger because the merger, at present, is free and this leads to the change of market share causing other business operators, with only little capital, to face the problem of the competition and to be implicitly eliminated from the market.
           Thus, this research proposes the solution by clearly prescribing the form of business merger; such as, indicating every form of business merger in the Notifications of the Competition Commission, in order that the enforcement of the Competition Act B.E. 2542 should be effective.