The ACCC will not oppose Compare The Market’s proposed takeover of iSelect.
Both offer online comparison tools for consumers looking for insurance, energy, and financial products and services.
Despite operating with the same remit, the ACCC said it “considers it unlikely” this acquisition will substantially lessen competition in any market.
“One of the major factors for this view is that only a small minority of consumers buy insurance, energy, and financial products through Compare the Market and iSelect,” the ACCC said.
“Most consumers purchase these products through other distribution channels such as brokers or direct from the retailer.”
Compare the Market’s parent company Innovation Holdings Australia already owns 26 per cent of iSelect.
“The online comparison services industry is very dynamic and so the threat of new entry or expansion by a competitor is likely to constrain the merged firm,” ACCC Commissioner Liza Carver said.
“Consumers can readily purchase insurance, financial and energy products directly from the supplier, and shop around using multiple competing comparator sites including government comparison websites.”
