The European Commission has opened an antitrust probe into possible anti-competitive practices related to a data pooling system run by Insurance Ireland.

The inquiry focuses on Insurance Link, a database managed by an association of insurance companies in Ireland.

The database is made up of claims data provided by its members and is meant to help prevent fraud by claimants. The commission will look at whether the conditions imposed on companies wishing to access this database may have put these companies at a competitive disadvantage on the Irish motor insurance market, in comparison to companies that already have access to it.

"Insurance is essential for all car drivers in Europe. We are investigating whether companies wishing to offer their services on the Irish motor insurance market may have been unfairly prevented from accessing a data pool managed by Insurance Ireland for its member companies," Margrethe Vestager, the EU's antitrust chief, said in a statement. "This could potentially reduce Irish drivers' choice of motor insurance policies at competitive prices."

The commission said data pooling can work to promote competition and lead to lower prices and greater choice for consumers.

The opening of the investigation follows inspections carried out in July 2017 in the Irish motor insurance market.