ACCC Won’t Block Compare The Market From Increasing iSelect Stake
The ACCC has decided it will not oppose ‘Compare The Market’ owners, Innovation Holdings Australia, from purchasing up to 35 per cent of shares in iSelect.
This is despite both Compare the Market and iSelect offering similar comparisons of insurance, energy, and financial services.
“We examined the acquisitions carefully, because iSelect is a major competitor to Compare the Market for comparison services,” ACCC Commissioner Stephen Ridgeway said.
“In some cases, even minority shareholdings in a competitor can lead to muted competition between the parties.”
IHA currently own 29 per cent of iSelect, and the ACCC doesn’t feel an additional 6 per cent constitutes a clash, stating it “would be unlikely to substantially lessen competition in any potential market for comparison services, including in any specific product category.”
“We consider that IHA owning the stake in iSelect will not substantially affect competition in the market,” Mr Ridgeway said.
“Other routes to market exist for providers, including other comparison websites. There are also government websites available to consumers.”