Thai regulator warns of restricted ads if US OTT platforms fail to register
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Rebecca Hawkes
| 30 June 2017

YouTube, Facebook, Netflix and other over-the-top (OTT) platforms will lose local advertising revenues if they fail to register their services in Thailand, the telecommunications regulator has warned.

On 27 June, the regaultor announced that the video services had by 22 July to register their streaming services,*establishing a local office in Thailand, thus mkaing them liable to localcorporate income tax. The offices must be led by executives authorised to issue service directives and clarify any problems that emerge in Thailand. The regulator warned that failure to do so risked potential advertising bans.

The OTT committee of the National Broadcasting and Telecommunications Commission (NBTC) met with representatives of 47 advertisers on digital platforms to advise them they must only place ads on registered sites.

“The companies we invited today are major OTT sponsors. They all have social responsibility and good corporate governance. I’m convinced they would cooperate with us to support only the providers complying with Thai laws,” NBTC vice chairman Natee Sakonrat is quoted as saying in the*Bangkok Post .

While legal action would be a last resort, Natee Sakonrat said that the Stock Exchange of Thailand would be informed about any platform provider that fails to abide by Thai law, and condemn the companies that continue to advertise on them.

However, industry body the Asia Internet Coalition (AIC) – which comprises Facebook, Google, LinkedIn, Apple, Twitter, Yahoo, Line and Rakuten – has expressed concern about the move in Thailand to regulate OTT servicesservices.

“The proposed regulations do not put Thai businesses and innovators first; they instead increase their regulatory burden and potentially limit their ability to grow. The rules cold also prevent millions of Thai people and enterprises from using open global platforms to build their businesses online,” said Jeff Paines, managing director, AIC.*“We are also concerned that the rules may be at odds with Thailand’s international agreements.”