Within the framework of the transaction, infrastructure provision (issuer processing/acquirer processing) market related to the payment services market was analyzed in detail.  The file concluded that the relevant product market can include the markets for providing infrastructure to cards, POS and ATMs if a broad definition is chosen; on the other hand, in case of a narrower definition, it can be composed of the services for card issuance data, card storage, POS terminal setup and integration in the field, ATM field operations, switch, authorization, fraud, chargeback, clearing and settlement. However, the file did not ultimately define a relevant product market, and instead attempted to set forth the competitive concerns for all alternative market definitions.

It was assessed that the horizontal overlap between the activities of the parties would not lead to competitive concerns for the transaction. At the same time, it was assessed that the acquisition transaction could result in unilateral effects, such as input foreclosure for PARAM’s competitors, in light of a number of observations including the fact that KARTEK held a strong position in the markets it serves, that KARTEK is among a limited number of players providing end-to-end products and services, that its customers would incur high costs to switch to alternatives, and that the service had a high cost. In addition, it was found that other unilateral effects would be data-related, since competitively sensitive strategic customer data for undertakings that procure services from KARTEK and are in competition with PARAM could be transferred to PARAM via KARTEK, which could lead to competitive disadvantages.

With the decision dated 14.03.2024 and numbered 24-13/262-M, the Board decided to take the transaction under final examination and request the opinions of third parties on the commitments offered. PARAM presented its final commitments prepared in accordance with the views of 105 undertakings operating in the markets concerned, and the Board authorized the transaction on 27.12.2024.

In this framework, PARAM committed to ensure that KARTEK and the companies in the PARAM group would operate as separate legal entities and to separate the executive boards of the companies in question. Additionally, it submitted certain commitments that require technical competence related to the legal and IT systems to render KARTEK’s strategic customer data inaccessible to PARAM or any of the latter’s employees. PARAM also offered commitments related to the conclusion of agreements with existing and potential customers under certain conditions and to maintaining continuity. The duration of the commitments submitted will be three years following the notification of the Board’s short decision authorizing the transaction.