No products in the basket.
True-DTAC oligopolistic merger challenged in a Thai court
The Supreme Administrative Court stated that the merger would impact fair competition and have widespread repercussions on subscribers due to the limited number of service providers in the telecom market.
The Supreme Administrative Court has ordered the lower Administrative Court to reconsider a petition by five consumers seeking to revoke the telecom regulator’s approval of the merger between CP Group’s True and Telenor’s DTAC.
Key Takeaways
- The Supreme Administrative Court has ordered the lower Administrative Court to consider a petition seeking the revocation of the telecom regulator’s consent for the merger of CP Group’s True and Telenor’s DTAC, despite the petition being submitted outside the permissible period.
- The petition, filed by a group of consumers, argues that the merger will lead to higher service charges, fewer players in the telecom market, and potential market control in the future.
- The Supreme Administrative Court emphasized the public interest in maintaining free and fair competition in the telecom industry, highlighting the potential widespread repercussions on subscribers.
Despite the petition being submitted late, the Supreme Administrative Court ruled that the case is of public interest and should be accepted. The consumers claim that the merger will lead to higher service charges, fewer players in the telecom market, and potential market control in the future.
The Supreme Administrative Court agreed, stating that the merger would impact fair competition and have widespread repercussions on subscribers due to the limited number of service providers in the telecom market.
In the telecommunications sector, Advanced Info Service (AIS), True Corporation, and Total Access Communication (DTAC) hold a significant market share, effectively creating an oligopoly and getting closer to a monopoly since the takeover of DTAC by True last year. These companies control the majority of the mobile phone and internet services in the country, giving them considerable influence over pricing and service offerings.
Discover more from Thailand Business News
Subscribe to get the latest posts sent to your email.
