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‘Sirikanya Tansakul’, MP’s forward party list Be careful after the CP-Tesco merger requests the cooperation of SMEs that are business partners of both companies if they encounter unfair trade. Give a hint Test information can be delivered to the front.
Sirikanya Tansakul, MP, Party Name List (File Image)
November 7, 2020 Ms Sirikanya Tansakul, MP, Kao Klai Party List Mention the case Competition Commission Considered to apply for a business combination license between CP Retail Development Company Limited and Tesco Store (Thailand)
Most of the directors resolved to allow the merger on condition, commenting that the merger gave the operator more market power in the modern retail market. Consumer goods in the category of small retail stores But not a monopoly Resulting in a significant reduction in competition But not causing serious damage to the economy. Just as it does not affect consumers in general. But it is necessary to take measures to reduce or remedy the effects that may occur
Of course, judging that this merger is not a monopoly does not exceed expectations. Because determining what the “market” is is quite discretionary. And in this case, the modern retail market, which includes convenience stores. And hypermarkets As for the use of market share as a criterion, it is well known that it is robust. And too fixed It’s also important to consider potential product sales, assets, and market share after the merger.
When it is not a monopoly But it has more power over the market (It refers to the power to raise prices with consumers. It is necessary to have measures to avoid the use of power over the market that leads to unfair trade. The diagnosis said that it would not affect But it will affect CP and Tesco Lotus partners such as suppliers, operators, warehouses and logistics.
Let’s see how the resolution does not specify the conditions to reduce or remedy the impact of the 7 conditions announced by the directive. There are both at CP AND Tesco must and must not do
The prohibition is not to carry out any mergers in three years and it is prohibited to share supplier information.
What needs to be done is: 1. Have CP and Tesco increase the share of the sales of SMEs, consisting of OTOP and community companies at a rate of 10% per annum for 5 years 2. Have Tesco keep the terms of the contract with suppliers. Previously for 2 years. 3. Have CP and Tesco establish a business loan with a 30-45 day credit term for SME products 4. Have CP and Tesco report on compliance with the conditions. Quarterly with the competition boards, and 5. Publish the standards of good practice (code of conduct).
You can see that this is largely a “behavioral” condition, and Soft is so much so that it doesn’t feel like it will actually impede the use of market power. Including increasing the proportion of otop products, reducing the term of commercial credit, which is not much different for agricultural products Maintaining the terms of the original contract and the commercial agreement was only 2 years, but there were no conditions regarding it to size after fusion. And these behaviors Even without merging, you should already be set up to do it.
While the case of merger in the retail business in the country where competition law is seriously applied. Generally, the conditions are set so that the size of the merged company is not too large. They may set a condition for a “downsizing” of a merger, or even “selling” a portion of the business prior to the merger so that once it is merged, the line of business is not large enough to have a negative effect. Market competition
Imagine that During the session to examine the use of power over the market case by case with allowing the market to have more options which indirectly reduces your power over the market. Which has the least cost to control? And the subsequent divestment remedy is very difficult. (Even with power) due to the high cost of both the Commercial Competition Commission Office. And to the operator who receives the order himself
It also revealed that the Km. Economic Development faculty will continue to follow the details of the board’s resolution for this competition. And I would like to request the cooperation of SMEs that are business partners of both companies in case of unfair trade. Give a clue Provide evidence to the Kao Klai Party or party deputies, we are happy to hide your identity during the investigation. Because we know that getting out of information can have negative effects on your business.
