MTA WA Welcomes ACCC Decision to Protect Competition in Western Australia

The Motor Trade Association of Western Australia (MTA WA) has welcomed the Australian Competition and Consumer Commission’s (ACCC) decision not to approve the proposed acquisition of RAC WA’s insurance business by Insurance Australia Group (IAG).

MTA WA CEO Neil Le Febvre said the decision reflected the importance of maintaining strong competition in Western Australia’s insurance and automotive repair markets.

“The ACCC has undertaken a thorough assessment of this proposal and has reached the view that the acquisition would likely result in a substantial lessening of competition. This is in line with our understanding and we welcome that decision,” Mr Le Febvre said.

“From the outset, MTA WA’s concerns centred on the potential impacts on market concentration, consumer choice, pricing and the future viability of independent automotive repair businesses across Western Australia.”

The proposed transaction would have combined two of the most influential participants in the WA insurance market, potentially increasing bargaining power over repair businesses and reducing competition within the sector.

“Healthy competition is critical for consumers and for the thousands of small and family-owned businesses that support vehicle owners every day.”

“Western Australia’s automotive repair industry relies on a competitive marketplace where businesses can compete fairly on service, quality and innovation rather than being subjected to excessive market power.”

Throughout the ACCC review process, MTA WA worked closely with repairers, industry stakeholders and the Motor Trades Association of Australia (MTAA) to ensure regulators fully understood the importance of preserving competition and protecting the long-term sustainability of the independent repair sector.

“The repair industry has been clear that any market structure which significantly concentrates insurer purchasing power can have downstream impacts on repair capacity, regional service availability, workforce investment and ultimately customer outcomes,” Mr Le Febvre said.

“MTA WA appreciates the ACCC’s careful consideration of these issues and the extensive consultation undertaken as part of its review.”

Mr Le Febvre said the decision provides certainty for businesses and consumers while reinforcing the importance of competitive markets in delivering value, innovation and choice.

“MTA WA remains committed to working constructively with insurers, regulators and government to support a sustainable, competitive and customer-focused automotive and insurance sector.”

While the ACCC’s decision brings this particular proposal to a close MTA WA said the broader challenges facing motorists, insurers and repairers remain.

“Regardless of ownership structures, our industry must continue working together to address workforce shortages, repair capacity constraints and the pressures created by rising repair costs.”

“Our focus remains on ensuring Western Australians have access to safe, high-quality vehicle repairs, competitive insurance markets and strong consumer choice.”

“MTA WA values the important role insurers play in our industry and remains committed to working collaboratively with all stakeholders to foster fair, balanced and productive relationships.”

About the MTA WA

Since 1934, the Motor Trade Association of Western Australia (MTA WA) has been the leading voice for the Western Australian automotive industry. With nearly 1,600 members, our Association represents a diverse range of businesses, from major organisations to small and medium-sized family-owned enterprises. Our members are involved in every facet of the automotive supply chain, including retail, service, repair, and maintenance, ensuring a comprehensive approach to industry representation.

Through active membership engagement, advocacy, dedicated apprentice employment services, and specialised light vehicle training courses, we are committed to protecting the interests of our members while supporting, growing and developing the automotive industry in Western Australia.

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