The review by the Competition and Markets Authority (CMA) highlights multiple concerns in the market, including:The CMA has provisionally decided that it should launch a formal Market Investigation focused on its provisional analysis of the issues in the sector and is now consulting on this proposal. &nbsp;A Market Investigation enables the CMA to investigate its concerns in full and to intervene directly in markets if it finds that competition is not working well. Along with compelling those under investigation to provide information, it gives the CMA access to a wide range of legally enforceable remedies, such as mandating the provision of certain information to consumers, imposing maximum prescription fees and ordering the sale or disposal of a business or assets.Sarah Cardell, Chief Executive of the CMA, 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.These include pet owners finding it difficult to access basic information like price lists and prescription costs – and potentially overpaying for medicines. We are also concerned about weak competition in some areas, driven in part by sector consolidation, and the incentives for large corporate groups to act in ways which may reduce competition and choice.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.The CMA launched its <a href="https://www.gov.uk/government/news/cma-launches-review-of-vet-sector" class="govuk-link">review of the sector</a> in September 2023 and issued a Call For Information (CFI) as part of that. This brought 56,000 responses - including 45,000 from the general public and 11,000 responses from those working in the vet industry which includes around a fifth of UK vets and veterinary nurses. The CMA also engaged extensively with, and secured feedback from, vet practices, industry bodies, charities, and others to understand the issues in the provision of these services.Although the call for information is not statistically representative of pet owners or the vet industry, the level of response demonstrates how important this issue is to millions of pet owners and those working in the sector.Based on the evidence gathered so far, the CMA has 5 key concerns that it proposes to investigate further:Market concentration measures how many competitors operate in a particular market – the fewer firms operating in a market, the more concentrated it is.Given the significant and ongoing growth of large corporate groups, the CMA is concerned that:The CMA has launched a 4-week consultation to seek views from the sector on the proposal to launch a market investigation. The consultation closes on 11 April 2023 at which point it will consider the responses received and a decision will be made on how to proceed.For further information visit the <a href="https://www.gov.uk/cma-cases/veterinary-services-market-for-pets-review" class="govuk-link">veterinary services</a> case page. This includes the <a href="https://www.gov.uk/government/consultations/consultation-on-the-proposal-to-make-a-market-investigation-reference-into-veterinary-services-for-household-pets-in-the-uk" class="govuk-link">consultation document</a> which sets out more details and statistics on today’s update.In a market investigation, a Market Reference Group is the independent panel that is required to decide whether there is a prevention, restriction, or distortion of competition. If it does identify such an adverse effect on competition, then it will consider what, if any, appropriate action should be taken to address this.

CMA Launches Market Investigation into Veterinary Services Market

The Competition and Markets Authority (CMA) has decided to launch a formal Market Investigation into the veterinary services market due to concerns such as difficulties for pet owners in accessing pricing information and prescription costs, potential overcharging for medicines, weak competition driven by sector consolidation, and incentives for large corporate groups to act in ways that reduce competition and choice. The CMA's review, initiated in September 2023, received a significant response from the public and veterinary professionals, leading to the proposal for a market investigation to address the identified concerns. The investigation will involve seeking views from the sector through a 4-week consultation, with the aim of intervening directly in the market if necessary by mandating information provision, imposing maximum prescription fees, or ordering the sale or disposal of businesses or assets. The Market Reference Group will play a crucial role in determining whether there is a prevention, restriction, or distortion of competition and deciding on appropriate actions to address any adverse effects.

CMA Launches Market Investigation into Veterinary Services Market

The Competition and Markets Authority (CMA) has identified multiple concerns in the veterinary services market, prompting a formal Market Investigation to address issues such as lack of price transparency and weak competition.