The Office for the Protection of Competition (ÚOHS) of the Czech Republic has concluded its review of two digital payment services operated by the retail chains Kaufland and Lidl, both subsidiaries of the multinational Schwarz-Gruppe concern. The assessment was conducted within the scope of the ÚOHS’s mandate to supervise compliance with obligations imposed on payment card scheme operators and payment transaction processors based in the Czech Republic.
The services under scrutiny—Kaufland Pay and Lidl Pay—represent digital wallets that are seamlessly integrated with the respective retail chain’s loyalty program.
Regulatory and Competition Compliance Findings
The ÚOHS assessed both digital wallet services against the requirements of both European Union and Czech national legislation.
European Union Legislation
The primary focus of the European review was Regulation (EU) 2015/751 of the European Parliament and of the Council of 29 April 2015 on interchange fees for card payment transactions. This regulation is pivotal in harmonizing the single market for payment card transactions and capping the fees charged between banks. Following its analysis, the ÚOHS determined that no infringement of this specific EU legislation was committed by either Kaufland Pay or Lidl Pay.
Czech National Legislation
In parallel, the Office also assessed the services for compliance with the domestic Act on the Protection of Competition. The review sought to ensure that the operation of these digital wallets did not result in any unfair competitive practices or abuse of market position. The ÚOHS concluded that no infringement of the national competition rules was found in relation to the two services.
Commitment to Ongoing Monitoring
The Office acknowledged that the area of payment transactions is dynamically developing. The ÚOHS has been monitoring this sector within its jurisdiction for an extended period and affirmed its commitment to the continued surveillance of the evolving payment landscape to proactively ensure regulatory compliance and fair competition.