A royal decree meant to regulate digital platforms will take effect on Aug 21, intended to transparently govern operators and promote consumer protection, says Digital Economy and Society Minister Chaiwut Thanakamanusorn.
The digital platform service law was published in the Royal Gazette on Dec 23, 2022.
Once the law is effective, platform operators seeking to do business in Thailand must provide information to the Electronic Transactions Development Agency (ETDA) before they can start operating.
Existing operators have until Nov 18 to provide information.
The decree, which is intended to regulate digital platforms, requires platform operators of a certain size, based on revenue or the number of users, to provide information about their business to the authorities annually.
The required information includes the value of transactions made via digital platform services, gross income from providing such services in Thailand, the proportion of total income from operating digital platform services in Thailand, as well as the number of users.
The decree defines digital platforms as electronic intermediation service providers that connect business operators with consumers or other users.
This means brands that have direct platforms to connect with customers will not fall under the regulation's requirements.
The original draft of the decree required foreign operators to appoint local representatives, but the revised draft only requires them to appoint a point of contact to send the required information.
Mr Chaiwut said around 1,000 platform operators, such as Facebook, YouTube and Google as well as e-marketplaces, are expected to provide their information under the law.
Businesses required to issue notifications include juristic entities with revenue of more than 50 million baht per year and individuals with revenue of more than 1.8 million baht per year.
Chaichana Mitrpant, executive director of the ETDA, said operators that registered businesses with the Commerce Ministry will also have to register with ETDA.
According to Dhiraphol Suwanprateep, counsel for intellectual property and technology at Baker McKenzie, existing digital platform service operators should consider whether their business and structure are subject to the decree and prepare for notification, as Nov 18 is the deadline.
"The term digital platform service is quite broad and there is no clear precedent or official guideline from the ETDA, meaning it is unclear for certain businesses if they fall under the decree," said Mr Dhiraphol.
"Being mindful of the notification deadline, operators should seek clarification in order to prepare for compliance."
Offshore digital platform service operators subject to the decree are required to appoint a coordinator in Thailand.
Offshore operators will need to start looking for a local coordinator, with roles and responsibilities that are different from the representative under the data protection law, said Pattaraphan Paiboon, partner at Baker McKenzie.
