# True-DTAC oligopolistic merger challenged in a Thai court

- Link: https://www.thailand-business-news.com/companies/133620-true-dtac-oligopolistic-merger-challenged-in-a-thai-court
- Published: 2024-03-28T14:56:47+07:00
- Author: Olivier Languepin

The Supreme Administrative Court has ordered the lower Administrative Court to reconsider
a petition by five consumers seeking to revoke the telecom regulator’s approval 
of the merger between CP Group’s True and Telenor’s DTAC.

## Key Takeaways

 * The Supreme Administrative Court has ordered the lower Administrative Court to
   consider a petition seeking the revocation of the telecom regulator’s consent
   for the merger of CP Group’s True and Telenor’s DTAC, despite the petition being
   submitted outside the permissible period.
 * The petition, filed by a group of consumers, argues that the merger will lead
   to higher service charges, fewer players in the telecom market, and potential
   market control in the future.
 * The Supreme Administrative Court emphasized the public interest in maintaining
   free and fair competition in the telecom industry, highlighting the potential
   widespread repercussions on subscribers.

Despite the petition being submitted late, the Supreme Administrative Court ruled
that the case is of public interest and should be accepted. The consumers claim 
that the merger will lead to higher service charges, fewer players in the telecom
market, and potential market control in the future.

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The Supreme Administrative Court agreed, stating that the merger would impact fair
competition and have widespread repercussions on subscribers due to the limited 
number of service providers in the telecom market.

In the telecommunications sector, Advanced Info Service (AIS), True Corporation,
and Total Access Communication (DTAC) hold a significant market share, effectively
creating an oligopoly and getting **[closer to a monopoly since the takeover of DTAC by True last year](https://www.thailand-business-news.com/business/132048-uncovering-the-oligopoly-and-monopoly-market-structure-in-thailands-economy)**.
These companies control the majority of the mobile phone and internet services in
the country, giving them considerable influence over pricing and service offerings.

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