The Competition and Markets Authority (CMA) has confirmed that it is to proceed with a full market investigation into the veterinary sector.
The decision follows an initial review last year, which prompted 56,000 responses, and a further statement in March asking for views on whether the investigation should go ahead.
Based on those responses, the CMA maintains that its key concerns remain the same as outlined in March, and will now use the market investigation to further explore whether:
- consumers are getting the information they need, at the right time, to make informed decisions
- a limited choice of vet businesses in some local areas is impacting pet owners
- profits earned are consistent with the levels expected in a competitive market
- vet businesses have the incentive and ability to limit consumer choice when providing treatments or recommending related services, particularly when they are part of large integrated groups
- the regulatory framework is preventing the market from functioning as well as it could
An inquiry group chaired by Martin Coleman will now oversee the investigation. Supported and advised by CMA staff, the group will be able to use CMA’s formal market investigation powers to gather additional evidence, examine concerns in more depth and shape potential remedies.
These could include mandating the provision of certain information to consumers, imposing maximum prescription fees and ordering the sale or disposal of a business or assets – all of which are legally enforceable. The CMA can also make recommendations to government – for example, by suggesting changes to the regulatory framework.
CMA chief executive Sarah Cardell said: “The message from our vets work so far has been loud and clear – many pet owners and professionals have concerns that need further investigation.
“We’ve heard from people who are struggling to pay vet bills, potentially overpaying for medicines and don’t always know the best treatment options available to them. We also remain concerned about the potential impact of sector consolidation and the incentives for large, integrated vet groups to act in ways which reduce consumer choice.”
The British Veterinary Association (BVA), which represents more than 19,000 vets across the UK, gave a cautious welcome to the announcement.
BVA president Dr. Anna Judson, said: “Vets take immense pride in the high-quality service and specialised medical care they provide the UK’s animals and their owners. Whilst fees reflect the investment needed to keep practices financially viable and open, we recognise more can be done to improve client choice and vet teams are already taking action to address the Competition and Markets Authority’s specific concerns around transparency of fees and practice ownership.
“As the CMA undertakes its investigation, it’s important to remember that vets genuinely care and prioritise the health and welfare of animals – it’s often their motivation for entering what is a highly pressured profession. Since the CMA first announced their review, vet teams in practice have found themselves on the end of really unpleasant, often abusive behaviour. This is unacceptable and we urge everyone to remember that vets are people and are often not responsible for the pricing structures within a practice.
“The Competition and Markets Authority has acknowledged that urgent reform of the outdated Veterinary Surgeons Act is needed and regulation of vet practices should be introduced, a change BVA has consistently campaigned for. As it stands, the legislation is not fit for purpose and is failing both vet teams and clients. We hope the CMA’s market investigation will further interrogate the need for reform and support our calls urgent cross-party support for action and inclusion in party political manifestos as we head towards a General Election.”
Retailer Pets at Home confirmed it would co-operate with the investigation.
A spokesperson said: “We note today’s announcement by the CMA to open a market investigation into the veterinary sector.
“We will continue to fully cooperate with the CMA to ensure our unique and pro-competitive business model of locally-owned vet practices is fully understood. Whilst our brand is national, our veterinary practices are led by individual entrepreneurial vets who have clinical and operational freedom and work tirelessly to always put pets needs first.
“We also hope that this investigation will provide an opportunity to shine a greater light on the incredible work provided by clinical and practice teams across the country and open up a conversation about much needed change and reform within the veterinary profession.”
