Thailand is revising its draft of the Digital Platform Economy Act after concluding the European Union's regulatory model is too stringent for the country's digital economy.

Digital Economy and Society (DES) Minister Chaichanok Chidchob said he told officials to adjust the draft, which is modelled after the EU's Digital Markets Act and Digital Services Act, as the EU version is too strict for Thailand.

"Even the EU is revising its own regulations, so we need to find the right balance for our circumstances," he said.

The Thai draft aims to regulate digital service providers, strengthen consumer protection and promote fair competition in online markets.

The government previously planned to submit this draft law to the Council of State for legal review before seeking cabinet approval, then introducing it to parliament during the current legislative session, with next month the tentative target.

Mr Chaichanok said policymakers should avoid focusing solely on the gross profit (GP) commission fee charged to merchants by online platforms.

Instead, they should consider the total take rate, which is the overall percentage of revenue deducted from merchants through commissions and various service fees.

If GP fees are reduced, platforms may simply compensate by increasing other charges, he noted.

"We need to assess the total cost to businesses rather than concentrating on a single fee," said Mr Chaichanok.

Mr Chaichanok says the ministry is considering a dedicated agency to regulate digital platforms.

National Network

The ministry is studying several international regulatory models, including India's Open Network for Digital Commerce, which promotes open digital commerce through interoperable networks, as well as China's regulatory framework, which combines dedicated legislation with specialised regulatory authorities overseeing digital platforms.

Another option is establishing a national platform that would bring together participating online marketplaces under a common governance framework.

Participating platforms could receive government incentives in return for complying with common standards.

If successful, such a network could strengthen the bargaining power of Thai businesses while providing an alternative regulatory mechanism alongside legislation and voluntary cooperation from platform operators.

"If we can successfully bring together platform operators and entrepreneurs under one umbrella, it would create another channel through which the government can negotiate and cooperate with the industry," Mr Chaichanok said.

Dedicated Agency

The government has also mulled establishing a dedicated agency to regulate digital platforms.

He said China's institutional model is being studied, although Thailand's original draft included the concept of a specialised regulatory committee, but with significantly less authority than its Chinese counterpart.

Creating a dedicated regulator would complement rather than replace other policy options, said Mr Chaichanok.

He recently met with Anthony Tan, group chief executive of Grab Holdings Ltd, to discuss strengthening cooperation to create economic opportunities for drivers, merchants and small businesses.

The company also expressed interest in participating in the government's upcoming "Thai Travel Thai" tourism campaign.

The government is evaluating Grab's proposal, including system architecture, verification mechanisms and digital identity requirements, Mr Chaichanok said.

GP fees were not discussed during the meeting with Grab, as the government is addressing platform fee structures collectively rather than negotiating individually with specific companies to ensure a level playing field, he noted.

Separate talks with TikTok centred on combating online scams through using artificial intelligence and know-your-customer verification systems, said Mr Chaichanok.

Chinese model

The DES Ministry is studying China's legal framework for regulating digital platforms and fighting online scams, he noted.

The Chinese approach includes stringent measures for overseeing online platforms and shares similarities with Thailand's Anti Online Scam Operation Center.

The ministry is considering whether elements of the Chinese framework can be adapted for Thailand.

Tackling online fraud requires coordinated action among related parties, while the private sector must be prepared to sacrifice part of its commercial interests and demonstrate genuine commitment to addressing fraud, said Mr Chaichanok.

The ministry is also preparing for talks with major technology platforms on developing Thailand's digital tourism infrastructure, he said earlier.