M-150 fined for bullying distributors

The Trade Competition Commission has delivered a milestone ruling, fining M-150, the manufacturer of M-150 energy drinks and a part of Osotspa Plc, 12 million baht for using market dominance to restrict fair competition.

Sakon Varanyuwatana, chairman of the commission, said the ruling came after a group of distributors filed a complaint to the commission in 2012 against M-150, alleging the company violated the Trade Competition Act 1999 (since repealed by the new Trade Competition Act).

Distributors complained M-150 had prohibited them from selling other energy drink brands and threatened not to supply M-150 to them if they failed to comply with the requirement.

Mr Sakon said the commission set up an investigation panel for the case and found M-150, which controlled more than 50% of the market with sales in the past year of more than 1 billion baht, is considered dominant in the market.

The unfair conditions imposed by M-150 limited the opportunities of distributors to choose to sell goods from other business operators, he said.

Such unfair compulsory conditions violate sections 25 and 29 of the new Trade Competition Act, which prohibits interference in operations of the business of other persons without reasonable cause and carrying out any action against free and fair competition and has the effect of destroying, damaging, obstructing, impeding or restricting the business operations of other business operators, or is intended to prevent other persons from carrying out businesses, or to cause them to cease their business.

Mr Sakon said M-150 agreed to pay the fine earlier this month and the case has already been settled.

Osotspa said in a statement M-150 had been fully cooperative with the committee in its investigation.

The settlement is in line with the new act, which empowers the committee to impose a fine to settle and resolve cases.