Court in Thailand allows True-Dtac merger lawsuits
Source：Bangkok Post
From：Taiwan Trade Center, Bangkok
Update Time：2024/05/09
The Supreme Administrative Court [in Thailand] last month overturned a ruling made by the Administrative Court of First Instance, thereby allowing the courts to accept lawsuits from five consumers regarding the merger of True Corporation and Total Access Communication (Dtac), a court source revealed.
According to the Supreme Administrative Court order, the ruling, based on Section 52 of the Act on Establishment of Administrative Courts and Administrative Court Procedures, BE 2542 (1999), was decided based on how the merger of the two mobile network providers affects the public.
The ruling stated that mobile networks are considered a basic service for the public. The ruling further stated that limitations on mobile frequency rate and the huge amount of investment mean that mobile providers are considered to be semi-monopoly businesses by nature. Turning it into a monopoly affects fair competition, which negatively impacts the public, according to the court order.
The mega deal in question was announced by Norway's Telenor, the parent of Dtac, and conglomerate Charoen Pokphand (CP) Group, the parent of True, at a joint press conference on Nov 22, 2021.
The deal raised concerns among consumer rights advocates as it could result in a duopoly with only two major players in the market, leading to higher service charges. However, on Oct 20, 2022, the National Broadcasting and Telecommunications Commission (NBTC) accepted the merger plan.
This led to lawsuits from the five consumers who were identified as customers of the rival Advanced Info Service (AIS) and True Move H Universal Communication (True Move), who claimed they were negatively affected by the merger. The Administrative Court of First Instance rejected the complaint and ordered the case to be thrown out, but the Supreme Court overturned the ruling on last month.
Earlier, Saree Ongsomwang, the Thailand Consumers Council's (TCC) secretary-general, said the NBTC's Oct 20, 2022 decision was against 2006's NBTC Notification on Monopoly Protection in Media and Telecom Business and the other related laws.
She also said the NBTC merely acknowledged the planned merger and did not exercise its power to control service quality, which violates consumer rights.
Source: https://www.bangkokpost.com/