Competition watchdog launches vet sector probe

The Countryside Alliance has welcomed the Competition and Markets Authority’s (CMA) decision, announced today (23 May 2024), to launch a market investigation into the veterinary sector. As we wrote back in April, those of us with pets have noticed the rising cost of veterinary care and medicines in recent years, not to mention the disappearance of many independent practices. 

This announcement follows an initial review in September 2023, which prompted an unprecedented response with 56,000 responses from pet owners and those working in the veterinary industry, and the CMA’s subsequent consultation earlier this year on its provisional decision to launch a market investigation, to which the Alliance responded. Our response to the consultation can be found here. 

The CMA has now established an inquiry group made up of independent experts and chaired by Martin Coleman who will oversee the investigation. The group will be able to use the full breadth of the CMA’s formal market investigation powers to gather additional evidence, examine concerns in more depth and shape any remedies that may be needed to address these concerns.  

Based on the evidence so far, the CMA’s key concerns remain the same as outlined in March and it is expecting the market investigation to explore further 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

While the Countryside Alliance is fully supportive of the CMA’s decision, we believe that any investigation should also give some consideration to the growth of the pet insurance market and any impact it may have in driving up costs and also recognise that equines are kept as pets and their care is also impacted. We are also concerned that the commercial pressures identified by the CMA in its initial consideration of veterinary services may have an effect on the advice veterinarians give in relation to interventions, treatments and procedures. This is an extremely sensitive area and while we appreciate that the CMA cannot investigate matters of clinical judgement, a distorted/anti-competitive market may drive interventions that are of minimal benefit to an animal especially where they are old or in a terminal condition.