Plans by the owner of Compare the Market to raise its stake in iSelect look set to go ahead after the competition watchdog says it “will not oppose” the move.

The Australian Competition and Consumer Commission (ACCC) announced its decision last week, after wrapping up a review into the matter.

The review was launched last November from an enforcement perspective after Innovation Holdings Australia said it was considering increasing its existing 29% holding 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.”

Innovation Holdings Australia is a subsidiary of the IHA Group, which also owns Auto & General Insurance.