A watchdog’s proposal to investigate the UK’s veterinary services market for household pets has been welcomed by Stuart Anderson, South Shropshire’s Conservatives Parliamentary Candidate. More than half of all UK households have a pet, meaning millions of people need to take their animal to the vet for routine care or to manage more serious or urgent concerns. The Competition and Markets Authority (CMA), the UK's principal competition authority, has found that there is a lack of transparency on prices and ownership that could weaken competition between vets and make it more difficult for consumers to choose the vet practice that best suits their needs. It has now proposed to fully investigate the market to see if intervention is needed to protect consumers.
The CMA’s proposal to launch a full investigation follows its market review in September 2023, which looked at consumer experiences and business practices in the provision of veterinary services for household pets. It explored how well the market, worth over £2 billion in the UK, is working for pet owners and whether they are getting a good deal. A Call for Information (CFI) received an unprecedented response, with over 56,000 responses in total, including almost 45,000 from pet owners and over 11,000 from veterinary professionals. It found that over 80% of vet practices have no pricing information on their websites, even for routine consultations or vaccines. It also found that many local vets are owned by large businesses who retain the name and branding when they acquire it, giving the illusion of competition and making it more difficult to shop around.
Having reviewed this evidence, the CMA has reported that it is concerned there may be a number of ways in which this market is not working as well as it could. The CMA has identified five areas of concern:
1. Consumers may not be given enough information to enable them to choose the best veterinary practice or the right treatment for their needs.
2. Concentrated local markets, in part driven by sector consolidation, may be leading to weak competition in some areas.
3. Large integrated groups may have incentives to act in ways which reduce choice and weaken competition.
4. Pet owners might be overpaying for medicines or prescriptions.
5. The regulatory framework is outdated and may no longer be fit for purpose.
As part of the consultation, the CMA has proposed to launch a formal investigation into the market. A Market Investigation Reference (MIR) would enable the CMA to investigate its concerns in full. As well as compelling those under investigation to provide information, the CMA would be able to intervene directly if it finds that competition is not working well.
Stuart Anderson said: “Pets play an important role in providing companionship to owners of all ages. My family are pleased to join with more than half of UK households in having a pet. Our dog Monty brings pride and joy to our home. Like all other pets, Monty requires care and occasional treatment from veterinary services. From my own experience and feedback from others, I am concerned about the impact of increased bills on all aspects of people's lives - including the costs associated with pet welfare. It is important that pet owners get value for money from their vets. So I welcome the CMA’s important work to ensure that pet owners are treated fairly and receive the information they need at the right time to get appropriate treatment for their pets.”
The Government is in close contact with animal welfare organisations and meets them regularly to understand issues that affect the sector, including the impact of rising bills on veterinary, pet food, energy, and animal care supply costs. There are charitable organisations across the country that support pet owners on low incomes through pet food banks and financial support with veterinary treatment during these difficult times, which is also helping to reduce pressure on pet owners.
The consultation will close at 5pm on 11 April 2024. Responses can be submitted at www.gov.uk/cma-cases/veterinary-services-market-for-pets-review.
