CMA launches full investigation into vet market
A group of independent experts will have access to the CMA's investigatory powers.
The Competition and Markets Authority (CMA) has launched a formal market investigation into the veterinary market, following consultation with major veterinary organisations.
This investigation will be conducted by a group of independent experts, who will have access to the CMA’s full investigatory powers.
The inquiry group, chaired by Martin Coleman, will seek to gather new evidence on the state of the sector. This will enable it to examine the CMA’s concerns in more depth, and develop strategies to address any issues. It will be supported and advised by CMA staff throughout the process.
The CMA’s concerns were outlined within the findings of its provisional investigation, published in March.
The department’s findings included suggestions that the spread of corporate-owned practices could be contributing to sector consolidation. This may lead to weakened competition, giving pet owners limited choice for their veterinary practices.
This lack of competition in the market also threatened to increase prices. This means that some businesses may be earning profits inconsistent with what might be expected in a competitive market.
The independent inquiry group will gather evidence for the first few months, and conduct analysis.
Potential responses may include the mandate of the provision of certain information to consumers, an imposed maximum prescription fee and ordering the sale or disposal of a business or asset. All of these responses are legally enforceable.
The CMA is also able to make recommendations to the government, such as changes to regulatory framework.
Sarah Cardell, chief executive of the CMA, said: “While we’re aware of acute staff shortages and difficult working conditions for vets, we consider a formal market investigation is essential to ensure good outcomes for the millions of pet owners in the UK as well as professionals working in the sector.
“The independent inquiry group will now take this investigation forward and, in the meantime, we’re publishing some tips to help pet owners better navigate vet services.”
The Federation of Independent Veterinary Practices (FIVP), which represents independent practices across the UK, says that the investigation could strengthen the veterinary sector.
Rita Dingwall, FIVP business development manager, said: “As a voice for independent veterinary practices, we support measures to ensure a level playing field in the veterinary industry. We believe that transparency and competition are essential for driving innovation, supporting the diversity of veterinary practice types and improving standards of care for all animals.”
She added: “We will continue to work with the CMA to uphold these principles and continue serving our communities with integrity and professionalism.”
The British Veterinary Association also believes it is an opportunity to reform the Veterinary Surgeons’ Act.
Anna Judson, BVA president, said: “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.”
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FIVP has shared a survey, inviting those working in independent practice to share their views on the CMA's proposed remedies.
