ACCC investigates iSelect (ASX:ISU) acquisitions

Company News

by Katrina Bullock

The Australian Competition and Consumer Commission has launched an investigation into acquisitions made by Innovation Holdings Australia.

The company is in the process of acquiring up to an additional 6 per cent of the shares of iSelect (ASX:ISU), which would take its holding to around 35 per cent. The problem is, it already owns comparethemarket.com.au.

Compare the Market and iSelect are in competition as they both offer a service comparing insurance, energy and financial product and services. Innovation acquired its current interest in iSelect without consulting the ACCC.

The regulator is now investigating whether the acquisitions are likely to substantially lessen competition.

This comes just one month the Federal Court ordered iSelect to pay $8.5 million in penalties for making false or misleading representations about its electricity comparison service.

Shares in iSelect (ASX:ISU) closed 1.79 per cent lower at 28 cents yesterday.