By Jirawat Poomsrikaew, Public Policy Consultant

Thailand stands at a crucial juncture in shaping the trajectory of its digital economy. Given the rapid evolution of the digital landscape, particularly with the ascent of artificial intelligence, the Thai government’s reconsideration of the draft Platform Economy Act (PEA)—a law mirroring the EU’s Digital Services Act (DSA) and Digital Markets Act (DMA) in its aim to impose obligations on online intermediaries for consumer protection and fair competition—presents a vital opportunity to craft a regulatory strategy that fosters both robust economic growth and positive social impact. The regulatory paradigms that underpinned Thailand’s past export-led successes are increasingly outdated for the dynamic and multifaceted nature of platform economies. To truly harness the potential of its digital ecosystem and address current economic headwinds, Thailand must adopt a forward-looking approach to platform regulation.

The growth of Thailand’s digital economy is undeniable. According to the e-Conomy SEA 2024 report, Thailand’s digital economy demonstrated solid performance in the first half of 2024, with an overall GMV of US$31 billion. Projections indicate further growth, reaching approximately US$36 billion by the end of 2024 and an estimated US$46 billion in 2025. E-commerce remains a significant driver, with a projected GMV of US$21 billion in 2024. These figures highlight the significant role of digital platforms in facilitating economic activity. The ongoing reconsideration of the PEA exemplified the developing nature of the regulatory environment governing these platforms. Furthermore, the increasing integration of AI into various aspects of the digital economy necessitates a regulatory framework that can adapt to and govern these emerging technologies.

The regulatory environment that fostered Thailand’s export-led growth in previous decades was characterised by a focus on attracting foreign direct investment through clear lines of control, established labour relationships, and sector-specific incentives. This model, while successful for its time, fundamentally differs from the decentralised and interconnected nature of platform economies. Platform economies connect diverse users, often blurring traditional employment boundaries and relying on algorithmic management. Imposing rigid regulations may inadvertently stifle the flexibility and innovation that define these digital marketplaces. As Thailand grapples with GDP growth lower than 3% for over six years and rising local debt, the digital economy, particularly platform economies, represents a critical avenue for future economic expansion. A regulatory framework that requires  disproportionately burdensome reporting, operational, and broad or unclear liability requirements on platforms could unintentionally hinder this vital growth driver and deter both domestic and foreign investment.

To cultivate a thriving platform economy ecosystem, Thailand needs to embrace a regulatory mindset shift. The focus should shift towards establishing a flexible, principles-based regulatory framework that can adapt to the rapid pace of technological change and an increasingly dynamic digital landscape, such as the rapid evolution of AI. Regulations must prioritise establishing overarching principles that actively shape platform behaviour, enabling flexibility for interpretation and adaptation as new technologies and business models evolve. This approach is crucial in the context of AI, where ethical considerations, data privacy, and algorithmic transparency demand consistent and proactive attention.

Recommendations

The following are several key considerations which could inform Thailand’s revised approach to platform regulation:

• Foster Innovation and Safeguards: Regulations should aim to promote innovation in the digital economy while effective and proportionate safeguarding personal and public interests. Achieving this delicate balance requires avoiding overly burdensome rules that could stifle the dynamism and growth of platform-based businesses. Instead, efforts should focus on targeted measures that address specific risks without constraining broader economic progress.
• Clear and Adaptable Definitions, and Regulatory Coordination: The regulatory framework must clearly define what constitutes a “platform” and differentiate between various platform categories (e.g., e-commerce, ride-hailing, social media) to ensure proportionate and targeted regulations. These definitions should be regularly reviewed and updated to reflect the evolving digital economy and emerging technologies. Crucially, any new regulation, like the PEA, should be crafted with existing frameworks in mind to enhance regulatory certainty—both for the industry and for government agencies—and clearly define the roles and responsibilities of relevant regulators to avoid confusion and fragmentation arising from regulatory overlap.
• Public-Private Collaboration: Establishing structured mechanisms for ongoing dialogue between government agencies, technology companies, and industry experts is crucial. This should include regular consultations, working groups, or advisory bodies to ensure that regulatory frameworks remain informed by industry insights and the latest technological advancements. Such collaboration fosters mutual understanding and supports the development of regulations that are both effective and practical.
• Regulatory Sandboxes: Implementing regulatory sandboxes can create controlled environments where businesses test innovative technologies under relaxed regulatory conditions. This enables regulators to proactively observe real-world applications and refine policies based on evidence, reducing the risk of premature or overly rigid regulations.
• Learn from International Best Practices: Thailand should benchmark its regulatory approach against leading digital economies, considering pro-innovation policies that have enabled platforms to drive economic growth. Examining models such as Singapore’s conditional safe harbor provisions under the Electronic Transactions Act and the EU Digital Services Act can offer valuable insights for crafting a nuanced regulatory framework. The Electronic Transactions Act B.E. 2544 (and its amendments) already provides a foundation.
• Focus on Fair Competition: Regulations should foster a competitive environment that encourages innovation to promote fair competition without resorting to overregulation. Addressing concerns on anti-competitive practices like self-preferencing and data hoarding by dominant platforms is essential, but enforcement should be fair across the economy: online, offline, local, and international players. Enforcement should aim to be proportionate and avoid stifling legitimate business practices or discouraging entrepreneurship, such as clearly defined instances of anti-competitive self-preferencing or data practices by any dominant player (online or offline, local or international).
• Government as Partner and Facilitator: The government should adopt the role of a partner-coordinator and facilitator, working alongside businesses to understand new innovations and co-develop best practices that support a thriving digital economy—rather than acting solely as an enforcer. This shift involves moving beyond a purely supervisory role to one of active engagement, support, and continuous mutual learning.

Conclusion

In conclusion, Thailand’s reconsideration of its platform economy regulation—particularly amid the growing influence of AI—offers a timely opportunity to shape a more resilient and prosperous digital future. The regulatory playbook that once fuelled export-led growth must now evolve to meet the demands of a dynamic, innovation-driven economy. By adopting adaptable, principles-based frameworks; fostering public-private collaboration; and drawing from global best practices, Thailand can build a regulatory environment that supports platform growth, harnesses emerging technologies, and ensures long-term competitiveness. In the digital age, the imperative is clear: regulate smarter—not harder—to unlock the full potential of Thailand’s digital economy.

About the writer

Jirawat Poomsrikaew is an accomplished professional with extensive experience in government affairs and public policy, particularly within the digital sector across Southeast Asia. His expertise includes navigating complex regulatory landscapes and advocating for favorable policies. He has a proven track record of providing policy recommendation and advocating for business interests, including managing regulatory challenges in areas such as intermediary liability, content regulation, OTT regulation, and intellectual property.