“Pawoot” highlights four issues as foreign platforms meet the government offering 500 million baht to assist Thai SMEs, but requiring a 10% fee increase in exchange. He urges the government to negotiate with all platforms, fears monopolization, and reminds not to forget Thai platforms.
On 5 Jul 2026 GMT+7, Mr. Pawoot Pongwitthayaphanu, a party-list MP from the Prachachon Party, posted on Facebook that he saw news about foreign platforms meeting the government, announcing 500 million baht to help Thai SMEs. The fact that global executives come to talk directly with the Thai government shows they value the Thai market, which is commendable. However, as someone who has closely followed the issue of foreign platforms and digital monopolies, the surface looks good, but one must look deeper behind the scenes.
1. Doing the math: 500 million baht divided among 1.2 million shops over six months means each shop gets only a few dozen baht per month. Moreover, the condition is a fee waiver for only the first 10 orders per month, and only for shops with sales under 10,000 baht. Those truly struggling from rising fees are not included, even though they are the majority facing the impact from increasing service charges now.
In simple terms, this is a marketing budget disguised as a “national aid fund” presented at the government house just as parliament and society pressure on foreign capital monopolies intensifies. It’s a “political shield purchase.” When the state tries to regulate platforms, they will hesitate. From another perspective, it’s a project to awaken small shops with low sales to grow into major platform customers—killing several birds with one stone.
2. On one hand, they give 500 million baht; on the other, they announce a fee increase. This is a critical point to see clearly. Just nine days after the platform executives met the Prime Minister, a new fee hike was announced, effective 4 Aug 2026 GMT+7.
“I have seen actual backend data from sellers on Shopee (thanks to the data owner for sharing). The numbers are shocking: in less than a year, combined fees (sales plus payment) rose from a minimum of 18.19% to 28.82%—almost one-third of the sale price. Shops are forced to raise prices by at least 20% or bear the full cost themselves. Where does the extra fee money go? It’s used as discount codes averaging 25% for buyers. Now, 98% of orders use these codes. Simply put, “without codes, no one buys.” This creates a cycle where shops raise prices to cover fees, platforms use fees to fund discounts, buyers become addicted to codes, and product prices inflate on the platform, even for the same items. This coupon mechanism distorts the entire market pricing, controlled entirely by the platform, not sellers or consumers.”
Compare the 500 million baht aid with a 10% fee increase on system-wide sales worth hundreds of billions baht—which is bigger? This explains why the project does not truly help most affected entrepreneurs.
3. Since they came to us, the government must set the conditions—not just open ceremonies. I propose turning the tables by leveraging their existing mechanisms for real benefit: elevate the export program of that foreign platform to a national priority. Launch a “Thailand Pavilion” front page in Malaysia, Singapore, Vietnam, and the Philippines, letting algorithms genuinely promote Thai products and actively push Thai shops to sell abroad with measurable targets for actual sales.
Use their already strong logistics as export channels, with the government subsidizing part of shipping costs to deliver Thai goods abroad at competitive prices. Collaborate with transport operators and fulfillment warehouses in Thailand and overseas (I suggest joining forces with the LogisTech Association).
Offer zero fees for one year to Thai shops selling overseas, encouraging Thai producers to become digital exporters. Importantly, transparency on fees must be part of negotiations: fee increases must have sufficient advance notice and clear caps—not multiple hikes each year as now.
4. Don’t negotiate with platforms one by one; regulate all simultaneously. If the government signs deals individually, advantages and disadvantages arise immediately. What should be done is to announce a national cooperation framework, bringing all major players to one table with uniform rules—for imported product standards like TIS/FDA, opening export channels for Thai goods (with API connections to government agencies for product verification), and transparency on fees.
TikTok leverages live streaming and creators to promote local Thai products, adjusting algorithms to show more Thai goods than foreign ones.
Meta and LINE have the highest rates of Thai buyers shopping through chat globally. They should be brought to integrate backend systems, logistics, and payments to enable independent shops to stand on their own, not relying solely on marketplaces.
Never forget Thai platforms. Some have already emerged. The government must fully cooperate with Thai platforms, not let them operate alone. Thai platforms must unite because the government cannot support just one company. Working through the E-Commerce Association can be a medium for government support.
Thanks to foreign platforms for stepping up to help Thai SMEs; it’s a good start. But offering 500 million baht with the left hand while increasing fees nearly 10% with the right hand is contradictory. We will not allow anyone to use a fraction of money to buy the right to monopolize the country’s digital economy.
“I don’t want foreign platforms to monopolize. Their executives should see this as sharing and growing together with the country’s online trade ecosystem. Several online trade associations have united; they should collaborate rather than monopolize the ecosystem themselves. To all entrepreneurs, don’t rely solely on marketplaces; build your own sales channels because rules can change anytime—and people change, not us. I hope this advice to the government will benefit Thailand’s rapidly growing online economy.”