It follows the first revision last September, which drew 56,000 responses to a call from pet owners and those working in the veterinary industry. The Competition and Markets Authority (CMA) then consulted on its interim decision to launch a market investigation, the outcome of which is being announced today.
The inquiry will now be overseen by an inquiry team of independent experts chaired by Martin Coleman. With the support and guidance of CMA staff, the group will be able to use the full breadth of the CMA’s formal market investigation powers to gather further evidence, investigate concerns in more depth and develop any remedial measures that may be needed to address those concerns.
Based on the evidence to date, the CMA’s key concerns remain the same as outlined in March. The CMA expects to use market research to further examine whether:
- consumers get the information they need at the right time to make informed decisions
- The limited choice of veterinary businesses in some local areas has an impact on pet owners
- the profits achieved are in line with the levels expected in a competitive market
- veterinary businesses have the incentive and ability to limit consumer choice in providing treatment or recommending related services, particularly when they are part of large integrated groups
- the regulatory framework prevents the market from functioning as well as it could
Examples of possible remedies include ordering the provision of certain information to consumers, setting maximum prescription fees, and ordering the sale or liquidation of a business or property, all of which are legally enforceable. The CMA can also make recommendations to the government – ​​for example proposing changes to the regulatory framework.
Sarah Cardell, Chief Executive of the CMA, said:
So far, the message from our vets has been loud and clear – many pet owners and professionals have concerns that warrant further investigation.
We hear from people who are struggling to pay vet bills, potentially overpaying for medication and not always knowing the best treatment options available to them. We also remain concerned about the potential impact of industry consolidation and incentives for large integrated veterinary groups to act in ways that limit consumer choice.
In March, we suggested that formal market research was the best way to fully explore these concerns and possibly take direct action to address them. This proposal was overwhelmingly approved during our consultations.
While we are aware of acute staff shortages and difficult working conditions for vets, we believe formal market research is essential to ensure good outcomes for the UK’s millions of pet owners and professionals working in the industry. An independent investigation team will now progress this investigation and in the meantime we are publishing some tips to help pet owners better navigate veterinary services.
Top tips for pet owners
CMA’s Top 3 Tips for Pet Owners
1. Look beyond the nearest vet
Many pet owners have told us that they choose a vet simply based on how close it is to where they live. It may seem convenient, but fees and services vary from practice to practice, so make sure it’s right for you.
2. Ask if there are other treatment options
The most important thing is to get a treatment that works for you and your pet. It is important that you understand why your vet recommended a particular treatment or test. But if you’re unsure about treatment or concerned about cost, talk to your vet.
3. If it’s not urgent, consider buying your medicine elsewhere
When it’s urgent, we want to get our pet the medicine it needs as quickly as possible. However, if your pet needs urgent care, then it may be cheaper, even including the prescription fee from your vet, to buy the medicine elsewhere – for example, from an online pharmacy or specialist pet store. About a quarter of pet owners who responded to our request for information were unaware.
For more information and full tips, visit CMA’s Vet Tips.
Next steps
An investigation team will lead the investigation. The first few months will focus on gathering more evidence from a wide range of stakeholders and conducting analyses.
Martin Coleman, chairman of the inquiry group, said:
The veterinary services market is worth an estimated £5 billion a year and provides essential services to pet owners, so it is right that we fully investigate competition concerns – this is important for businesses, veterinary professionals and most importantly the 16 million households in the UK that have pets pets.
Market research is inherently complex and comprehensive. They require time to fully explore issues and ensure that all views are heard so that we can get the right results and take appropriate action where necessary to make the market work for everyone.
See the Veterinary Services case page for more information. This includes a consultation document and a decision document which set out in more detail the background to the decision to accept the market research reference.
Notes for editors:
- Under section 131 of the Business Act 2002, the CMA can make a reference to a market investigation if it reasonably suspects that any feature or combination of features of the United Kingdom (UK) market for goods or services prevents, restricts or distorts competition in relation to the supply or by acquiring any goods or services in the United Kingdom or part of the United Kingdom.
- In a market investigation, a market reference group is an independent inquiry group to decide whether competition is prevented, restricted or distorted and then consider what, if any, appropriate action should be taken.
- For all media inquiries email the CMA Press Office: press@cma.gov.uk or telephone 020 3738 6460.