In today's digital age, digital platforms have gained immense popularity and are expected to continue their growth across various industries. End users appreciate the convenience these platforms offer for searching, purchasing and comparing products, and accessing user reviews, as well as the flexibility to use them from anywhere with an internet connection.
This convenience, however, raises questions about trust, transparency and reliability. Recognizing these concerns, countries like Japan and the EU have implemented measures to address issues within digital platform operations.
Thailand responded to these challenges through its recent Digital Platform Services Law, officially titled the Royal Decree on the Operation of Digital Platform Service Businesses that are Subject to Prior Notification B.E. 2565 (2022). Effective 21 Aug. 2023, it marked a significant step in shaping the evolving landscape of digital platforms in Thailand.
The DPS Law focuses on digital platform service operators. These operators connect users — like businesses and consumers — for electronic transactions through digital platforms, regardless of the service fees charged.
Digital platform service operators conducting business outside Thailand also fall under the DPS Law's jurisdiction if they provide services to users within Thailand. In such cases, the digital platform service operator must appoint a local coordinator to facilitate communication with the Electronic Transactions Development Agency and ensure compliance with the DPS Law.
However, digital platform services exclusively engaged in offering goods or services from the operator's own or affiliate entities are not subject to the definition of digital platform service under the law. Moreover, users of digital platform services — whether business operators or consumers — bear no obligations under the law's provisions.
Classifying digital platform service operators
Considering the difference and level of obligations, digital platform service operators can be classified in two main categories.
Those in the first category are individual operators with annual gross revenues exceeding THB1.8 million or entities with annual gross revenues exceeding THB50 million and/or user bases of more than 5,000 monthly users. In calculating these thresholds, only revenue generated from services provided within Thailand and for users in the country is considered.
Before commencing operations in Thailand, and annually thereafter, these digital platform service operators must submit comprehensive notifications to the ETDA. This includes information related to the operator, its business, users, top-five complaints, points of contact in Thailand if operating outside the country and consent for the ETDA to access the provided information.
Upon receiving a receipt of acknowledgment from the ETDA, the operator can conduct its business. Notably, the ETDA announced, beginning 6 March, acknowledged operators can submit a request to display "ETDA DPS Notified" on their websites or applications to demonstrate compliance with the DPS Law.
Operators in this category specifically providing services for remuneration, acting as an intermediary platform for offering goods or services to consumers, having contractual relationships with business users in offering goods or services to consumers, or providing search engines are mandated to publish terms and conditions of services before or at the time provided.
This includes information about key factors of algorithms or criteria for ranking or recommending goods or services, displaying advertisements, and evaluating customer satisfaction and feedback. These operators must also notify the ETDA and users of any revisions and submit compliance reports. In certain cases of revisions to terms and conditions, operators must notify users of their right to cancel services or terminate the contract at least 15 days before the effective date of the revisions.
There are added responsibilities for large digital platform services with annual gross revenues from each type of service exceeding THB300 million or from all types of services exceeding THB1 billion, services with monthly users over 10% of Thailand's population, and specified digital platform services identified by specific characteristics or impacts related to security and publics. These include risk assessments, risk-mitigation measures and compliance with actions prescribed by the Electronic Transactions Committee.
Also, specified digital platform service operators must give users at least 15 days to comment on modified terms and conditions unless for specific reasons, such as legal compliance or new services.
All digital platform service operators in this first category must establish measures for damage mitigation and compensation, addressing users affected by their operations. This includes complaint procedures and support channels.
Digital platform service operators in the second category are those that fail to meet thresholds outlined above or those exempted by the Electronic Transactions Committee. According to the published notification, websites or applications that exclusively offer goods or services from the operator's own or affiliate entities and that provide a web board to assist users or display hyperlinks or banners, facilitating users to link to other websites or digital platform services, are considered operators under this second category.
Operators in this second category must notify the ETDA before conducting business operations, providing information about the operator, business and point of contact in Thailand, for those operating outside the country.
These digital platform service operators must also report these details to the ETDA annually, including transaction value, gross revenue, total number of users and each user type. Failure to fulfill these duties may lead to publication of noncompliance by the ETDA.
Lastly, it is important to note the DPS Law was promulgated by virtue of the Electronic Transactions Act B.E. 2544 (2001). Operating digital platform services without notifying the ETDA as prescribed may result in imprisonment for up to one year, a fine of up to THB100,000 or both, according to the act.
