BRUSSELS, May 14 (Reuters) - Europe's largest retailers

and online retail giants have urged the European Commission to

rein in allegedly high fees charged by Visa and Mastercard ( MA )

, saying they hurt the bloc's competitiveness and hamper

rivals.

Visa and Mastercard ( MA ) dominate the market for payment cards

and have in recent years faced complaints from retailers about

their scheme fees, and what retailers say is a lack of

transparency on these fees. The two U.S. companies process about

two-thirds of card payments in the euro zone.

The retailers' grievances have in part prompted the

27-country European Union to look into alternatives such as a

digital euro to lessen dependence on American payment providers.

The slow legislative process on a digital currency, however, has

frustrated some policymakers and businesses.

"International Card Schemes (ICS) have been able to increase

their fees without competitive challenge or regulatory scrutiny.

They have also rendered their system of fees and rules so

complex and opaque that players are unable to understand, let

alone challenge, what they are paying for and why," the

retailers said in a letter dated May 13 and seen by Reuters.

The group cited a 2024 report by The Brattle Group that

showed a cumulative increase in ICS' fees of 33.9% between 2018

and 2022 - averaging 7.6% per year - on top of inflation, but

did not find any corresponding improvement in service for EU

merchants and consumers.

Visa and Mastercard ( MA ) did not have any immediate comment.

The letter was addressed to the Commission's antitrust chief

Teresa Ribera, financial services commissioner Maria Luís

Albuquerque and economy chief Valdis Dombrovskis.

Signatories were EuroCommerce, Ecommerce Europe, Independent

Retail Europe, the European Association of Corporate Treasurers

and the European Digital Payments Industry Alliance.

Members of the lobby groups include Aldi, Amazon ( AMZN ),

Carrefour, eBay ( EBAY ), H&M, Ikea, Intersport, Marks

& Spencer ( MAKSF ), Worldline, Nexi and Teya.

The letter called on the Commission to take action against

Visa and Mastercard ( MA ) under EU antitrust rules, modify the rules

on interchange fees by imposing price controls on scheme fees,

levy transparency and non-discriminatory obligations on ICSs and

introduce a tool for regulators to scrutinise actions taken by

the ICSs.