The competition watchdog says it “will not oppose” moves by a rival of iSelect to increase its stake in the listed comparator, after completing an investigation into the proposed investment.

The Australian Competition and Consumer Commission (ACCC) announced its decision today, paving the way for Innovation Holdings Australia, the owner of Compare the Market, to proceed with plans to raise its stake in iSelect to as much as 35%.

The ACCC launched an investigation in November after Innovation Holdings said it was considering increasing its existing 29% stake in iSelect by up to 6%.

The regulator says the proposed investment would be unlikely to substantially lessen competition in any potential market for comparison services, including in any specific product category.

“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.

“We consider that [Innovation Holdings Australia] owning the stake in iSelect will not substantially affect competition in the market.

“Other routes to market exist for providers, including other comparison websites. There are also government websites available to consumers such as www.energymadeeasy.gov.au and www.privatehealth.gov.au.”

Innovation Holdings Australia’s existing 29% stake in iSelect was made through a series of acquisitions beginning in 2018 without prior consultation with the ACCC.

The ACCC said last November when it launched the investigation that it was reviewing the matter from an enforcement perspective.