THAILAND: Chang beer cleared of unfair practice in latest round of Thai beer war
By Chris Brook-Carter | 6 September 2000
In the latest chapter in the Thai beer war, Chang Beer, has been found not guilty of unfair business practices by Thailand's Fair Trade Commission. Reports of the decision in the Thai press have said that the attempts by Chang rival, Singha Brewery, to have Chang charged have been unsuccessful. Singha believed that Chang's practice was to sell beer at below-cost prices to distributors who also agreed to buy a certain amount of its liquor violated trade laws.But the Fair Trade Commission ruled that Chang did not undertake this practice as a company policy, rather it was an independent action by some of its wholesalers. The wholesalers can only be found guilty of breaking the law if it is proved they can control the market.However, the Commission may ask Chang to try to curb the practice because it is deemed inappropriate. Meanwhile, Singha can launch an appeal if it can prove either Chang or its wholesalers control the market.
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In the latest chapter in the Thai beer war, Chang Beer, has been found not guilty of unfair business practices by Thailand's Fair Trade Commission. Reports of the decision in the Thai press have said that the attempts by Chang rival, Singha Brewery, to have Chang charged have been unsuccessful. Singha believed that Chang's practice was to sell beer at below-cost prices to distributors who also agreed to buy a certain amount of its liquor violated trade laws.But the Fair Trade Commission ruled that Chang did not undertake this practice as a company policy, rather it was an independent action by some of its wholesalers. The wholesalers can only be found guilty of breaking the law if it is proved they can control the market.However, the Commission may ask Chang to try to curb the practice because it is deemed inappropriate. Meanwhile, Singha can launch an appeal if it can prove either Chang or its wholesalers control the market.
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