CMA outlines plan to investigate ‘multiple’ veterinary sector concerns

Business regulators are to consult on plans to launch a formal market investigation of the veterinary sector after identifying “multiple concerns” with its present operations.

The Competition and Markets Authority (CMA) said it had received an “unprecedented” reaction to the review it launched last autumn, with more than 56,000 responses.

The body is now beginning a consultation process, running until 11 April, for groups within the industry to have their say on what is currently being described as a provisional decision.

An update on the review released this morning (12 March) identified five principal concerns with the current shape of veterinary services.

Key concerns

The CMA said:

• 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 that 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• The regulatory framework is outdated and may no longer be fit for purpose

Although most of the submissions to the review were from the general public, the authority said it received around 11,000 from people who are working in the veterinary sector itself.

Investigation

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.

“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.”