Thailand has reconsidered its proposed Digital Platform Economy Act after the Ministry of Digital Economy and Society found that the European Union regulatory model used as a basis for the draft may have been too stringent for the country’s digital economy.
Thailand’s Ministry of Digital Economy and Society (DES) has begun revising the proposed Digital Platform Economy Act, reassessing a framework initially influenced by the European Union’s Digital Markets Act and Digital Services Act.
The draft was intended to regulate digital service providers, strengthen consumer protection and promote fair competition in online markets. The government had previously planned to submit the legislation to the Council of State before seeking Cabinet approval and subsequently introducing it to Parliament.
The DES Ministry is now reviewing the framework to ensure that the proposed rules better reflect Thailand’s economic conditions and regulatory environment.
Broader approach to platform fees
The review indicates that Thailand may move away from directly adopting a highly prescriptive foreign regulatory model.
One area under consideration is the treatment of fees charged by digital platforms. Instead of focusing on specific charges, such as gross profit commission fees imposed on merchants, policymakers are examining the overall “take rate” deducted through commissions and other service fees.
The approach reflects concerns that regulating a single component of platform pricing could result in platforms shifting costs to other fees without reducing the overall financial burden on merchants. The policy focus is therefore shifting towards addressing unfair market practices while allowing platforms and businesses greater commercial flexibility.
Alternative regulatory models
Thailand is also examining regulatory approaches used in other markets. These include India’s Open Network for Digital Commerce, which promotes interoperability between participating digital commerce networks, and elements of China’s framework, which combines specific legislation with specialised regulatory authorities.
The government is considering a national platform or network operating under common governance standards and potentially supported by government incentives. A dedicated regulator for digital platforms is also being considered.
These options could result in a hybrid regulatory model combining legislation, institutional oversight, industry cooperation and shared technical infrastructure, rather than relying exclusively on extensive statutory obligations.
Online fraud and digital governance
The policy review is also linked to Thailand’s efforts to tackle online fraud and address the growing influence of major technology platforms.
Discussions with platform operators have covered digital identity, verification systems, artificial intelligence and know-your-customer measures. The DES Ministry is also studying whether elements of China’s anti-scam framework could be adapted for Thailand.
As a result, the proposed platform legislation is increasingly being considered as part of a broader digital governance framework covering fraud prevention, platform accountability and cooperation between government and private-sector operators.
Implications for businesses
The revision could reduce the risk of Thailand adopting platform obligations that are disproportionate to the size and maturity of its digital market. However, the redrafting also leaves uncertainty over the final compliance requirements.
Online marketplaces, e-commerce businesses and major technology platforms will need to monitor developments, particularly in relation to fee structures, consumer protection, platform governance, digital identity and anti-fraud responsibilities.
For Thai merchants and smaller businesses, the eventual framework could affect bargaining power and platform costs. Policymakers will need to balance stronger accountability with regulatory requirements that do not unnecessarily discourage investment, innovation or participation in Thailand’s digital economy.
