The ACCC has officially opposed insurance company IAG’s proposed acquisition of the RAC.

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ACCC Chair Gina Cass-Gottlieb explained to Perth Today host Simon Beaumont that the decision was driven by the potential for a large market share and the resulting lack of competition the merger would create.

“The likely downsides are the increase in prices so for premiums and also a reduction of quality of the insurance products, and that is important,” she said.

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Image: Sydney Morning Herald