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Thailand `Market Dominance' Issue Goes to Cabinet.
Byline: Chatrudee Theparat
Aug. 1--Deputy Prime Minister Somkid Jatusripitak has asked the cabinet to review proposed new definitions of market dominance under the country's competition laws, given concern about the impact on foreign investment.
"Since the issue is quite sensitive to foreign investor sentiment, [Prime Minister Thaksin Shinawatra] has asked Dr Somkid to consider it carefully. As a result, Dr Somkid decided to pass the issue to the cabinet for a decision," said a government source.
The law has been widely debated since a ruling earlier this year that AP Honda, which holds the lion's share of the local motorcycle market, engaged in anti-competitive practices.
Honda has denied the claim, saying that it co-operated fully with authorities in supplying information but was never told clearly what the information was being used for.
Normally, the economic screening committee chaired by Dr Somkid has full authority to approve economic regulation, including the definition of market dominance.
However, Mr Thaksin recently expressed concern that overly strict regulation of business practices would be unfriendly to existing foreign investors and newcomers as well.
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