Shopee Thailand Found in Violation of Competition Law, Hit With Administrative Fine

According to reports on September 20, Thailand’s Trade Competition Commission (TCCT), citing information from MLex, has ruled that Shopee Thailand violated competition law.

Between June 2020 and August 2021, the platform automatically enrolled some sellers in its free-shipping perks and 10% coin cashback promotions without prior consent from the sellers. After the free trial period ended, sellers who did not complete the opt-out process were charged additional fees. The TCCT determined these practices constituted an abuse of Shopee’s superior bargaining power over sellers on its platform.

The commission rejected Shopee’s defense that social media and other retail channels could serve as alternatives to e-commerce platforms, defining the relevant market as e-commerce platforms. It calculated that Shopee held a 44.49% market share in Thailand’s e-commerce sector in 2020 before issuing the administrative fine against the company.

This article was first published on the official website of Ebrun. [Source: Ebrun Go, an automated writing robot developed by Ebrun that delivers real-time e-commerce industry insights via algorithms. This AI reporter is still in its early stages of development, and we welcome feedback or suggestions to help improve it via run@ebrun.com or direct messages.]