The Competition and Markets Authority (CMA) has decided to proceed with a formal Market Investigation into the veterinary sector.
The CMA first launched a review of the sector in September 2023 and has since looked at 56,000 responses including 11,000 from the vet industry and 45,000 from the general public. The CMA also secured feedback from vet practices, industry bodies, charities, and others to understand the issues in the provision of these services.
As a result, the CMA has found several items of concern and has provisionally decided that it should launch a formal Market Investigation, which will enable the Authority to investigate its concerns in full and to intervene directly in markets if it finds that competition is not working well. Along with compelling those under investigation to provide information, it gives the CMA powers to impose a range of legally enforceable remedies, such as mandating the provision of certain information to consumers, imposing maximum prescription fees and ordering the sale or disposal of a business or assets. The CMA has launched a four-week consultation, closing on April 11, to seek views from the sector on the need for a full Market Investigation.
The CMA’s concerns fall into five main areas, namely:
- Consumers may not be given enough information to enable them to choose the best veterinary practice or the right treatment for their needs.
- Concentrated local markets, in part driven by sector consolidation, may be leading to weak competition in some areas.
- Large corporate groups may have incentives to act in ways which reduce choice and weaken competition.
- Pet owners might be overpaying for medicines or prescriptions.
- The regulatory framework is outdated and may no longer be fit for purpose.
Within these, the CMA points out that most vet practices do not display prices on their websites, that customers are not always informed of the cost of treatment before agreeing to it and that a company can own multiple vet practices in a local area without making that clear.
CMA chief executive Sarah Cardell said: “We launched our review of the veterinary sector last September because this is a critical market for the UK’s 16 million pet owners. The unprecedented response we received from the public and veterinary professionals shows the strength of feeling on this issue is high and why we were right to look into this.
“We have heard concerns from those working in the sector about the pressures they face, including acute staff shortages, and the impact this has on individual professionals. But our review has identified multiple concerns with the market that we think should be investigated further.
“These include pet owners finding it difficult to access basic information like price lists and prescription costs – and potentially overpaying for medicines. We are also concerned about weak competition in some areas, driven in part by sector consolidation, and the incentives for large corporate groups to act in ways which may reduce competition and choice.
“Given these strong indications of potential concern, it is time to put our work on a formal footing. We have provisionally decided to launch a market investigation because that’s the quickest route to enable us to take direct action, if needed.”
