The Finnish Competition and Consumer Authority (FCCA) has conducted an investigation into the veterinary services market, revealing that market consolidation by two major chains owned by foreign private equity firms has led to increased prices for pet owners.

The consolidation in the veterinary sector has been driven by private equity investors acquiring smaller companies, resulting in significant market concentration in Finland. Currently, two chains, Evidensia and Vireä, dominate the market, with Evidensia holding a 40-50% share nationally and over 70% in the private pet hospital market.

The FCCA's study indicates that the trend of consolidation is likely to continue, with the authority lacking the power to intervene effectively due to existing merger control rules that only apply to transactions exceeding certain turnover thresholds.

Furthermore, the FCCA found that the acquisition of Omaeläinklinikka by Evidensia led to a 28% price increase between 2021 and 2024, significantly higher than the sector's average. The study also highlighted incomplete price disclosures by companies in online booking systems, hindering consumer ability to compare prices and weakening price competition.

The FCCA has called for the implementation of a 'call-in option' that would allow the authority to investigate acquisitions falling below turnover thresholds in exceptional cases, a measure already in place in other Nordic countries and various EU nations. This option aims to address harmful market concentration occurring outside regulatory oversight in various sectors.