CMA confirms vet market investigation

Business regulators will proceed with a full market investigation of UK companion animal veterinary services, it has been confirmed.

The Competition and Markets Authority (CMA) announced its decision this morning (23 May), six weeks after the closure of a consultation process triggered by the findings of its initial review.

The body has also issued new guidance for pet owners on how to choose both a veterinary practice and appropriate treatments for their animals.

A new report explaining the decision said the overall consultation response had “overwhelmingly endorsed” the investigation proposal.

It acknowledged that the idea was opposed by the larger corporate veterinary groups, who submitted counterproposals, but said they “fell some way short of providing a comprehensive solution”.

Inquiry group

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.”

An inquiry group, which will be chaired by a non-executive CMA board director, Martin Coleman, has been appointed to conduct the investigation, which will focus on 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

‘Remedy’ options

The authority said potential remedy options could include new consumer information requirements, maximum prescription fees, ordering business sales and regulatory recommendations to the Government.

It has also issued advice for pet owners including looking further than their nearest practice for care, asking for alternative treatment options and considering buying non-urgent medication from other sources. The full guidance is available here.

Mr Coleman said: “The vet services market is worth an estimated £5 billion a year and provides a necessary service to pet owners so it’s right that we fully investigate competition concerns – this matters to businesses, veterinary professionals and, crucially, the 16 million households in the UK who have pets.

“Market investigations are, by their nature, comprehensive and complex. They require time to fully explore concerns and to ensure that all points of view are heard so we can reach the right outcomes and take appropriate action, if needed, to make the market work for everyone.”