Rajah & Tann Regional Round-Up
your snapshot of key legal developments in Asia
Issue 2 - Apr/May/Jun 2023
 

Digital Platform Service Providers – Decree Takes Effect on 19 August 2023

The Royal Decree on Digital Platform Service Businesses Requiring Notification ("DPD"), which was issued on 22 December 2022, will come into effect on 19 August 2023, amidst the lack of a clear guideline or interpretation on which operators will be subject to the new law.


Under the DPD, a "digital platform service" means "a provision of service as a medium via electronic means which processes information management to create linkage by using computer networks between entrepreneurs on digital platform, consumers, or service's users to carry out electronic transaction, with or without charging service fees. [T]his does not include a provision of digital platform service which is intended to offer only goods or services of the digital platform service operator or its affiliate which is an agent thereof, whether the offer is made to a third party or its affiliate." With this broad definition, many existing digital platforms in Thailand's market, including food delivery platforms, e-commerce platforms, and ride-hailing platforms, may all be regulated under the DPD.


The DPD is also written to be extra-territorial. An offshore platform would be deemed as having an intention to provide services to users in Thailand and be subject to the DPD if it has one of the following characteristics:


  1. displaying its platform in the Thai language (whether in whole or in part);
  2. having its domain registered ".th", ".ไทย", other names which means Thailand, or using a domain name in the Thai language;
  3. providing a payment method or option of payment in THB currency;
  4. specifying a term to use Thai law as the governing law for transactions relevant to the sale of products or services on the digital platform service, or specifying a Thai court as the choice of forum;
  5. paying remuneration to a search for a computer's location service provider to specifically support access to the digital platform service by users in Thailand;
  6. having an office, organisation, or personnel to support or assist users in Thailand; or
  7. other characteristics as prescribed by the Electronic Transaction Commission.

Platforms regulated by the DPD are required to notify the Electronic Transactions Development Agency ("ETDA") of their business details before commencing their business, or within 90 days from the effective date of the DPD for existing service operators. Apart from this, platforms have several duties, including annual reporting and disclosure of the platform's terms and conditions. Offshore platforms will also be required to appoint a coordinator in Thailand to liaise with ETDA. Failure to comply with the requirements may result in a suspension of business and criminal penalties.



Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice.

 

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Melisa Uremovic
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Krida Phoonwathu
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Nattarat Boonyatap
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Piroon Saengpakdee
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Pakpoom Suntornvipat
Partner
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pakpoom.s@rajahtann.com

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