Competion law experts at the Universities of Glasgow and East Anglia have responded to the findings of a Competition and Markets Authority (CMA) market investigation into veterinary services for household pets.
The CMA report identifies a number of adverse effects on competition arising from the workings of the market and, in some cases, the practices of some larger veterinary chains.
While welcoming the CMA’s attempts to drive greater clarity for pet owners, Dr David Reader (Senior Lecturer in Competition Law at the School of Law) and Dr Scott Summers (Association Professor in Business Law at the Centre for Competition Policy at the University of East Anglia) warn that there is no guarantee transparency remedies alone, as recommended by the report, will bring down veterinary prices or keep them from increasing above inflation.
They add that the risk of further corporate consolidation is "real", with the CMA’s main instrument for reviewing veterinary practice mergers having been significantly blunted by wider procedural reforms during the course of its inquiry.
The government’s pro-growth strategic steer to the CMA may yet have a further impact on the investigation’s outcomes, with Drs Reader and Summers warning that recommendations by the CMA that require legislative change, including those related to a new effective complaints/redress regime, may never see the light of day due to limited political appetite.
Although the CMA report presents a strong acknowledgement of the link between affordable care and animal welfare, Reader and Summers are unconvinced that such care is assured by the remedies put forward by the CMA, albeit they have no doubt that this is what the report had sought to achieve.
Dr David Reader said: "While the CMA’s measures "empower" consumers with a clearer picture of prices, treatment options and practice ownership, pet owners will only see lower vet bills if they act on this newfound transparency by shopping around, asking the right questions, and being prepared to switch. Our research suggests that this is not easy for many pet owners. There are practical obstacles to switching between providers and choice may be limited. But we also see that where pet owners and clinicians engage in a dialogue built on trust and mutual respect, outcomes for pet owners and their animals are improved. This requires pet owners overcoming any sense of guilt in discussing price or a belief that more expensive options always lead to better outcomes for their animal."
Since late-2023, Dr Reader and Dr Summers have been leading a research project to examine what has been driving changes in the country’s vet industry. Their research looks at how vulnerable pet owners navigate rising costs and access care, how the growing takeover of vet practices by large corporate groups is affecting the market and the wider profession, and the role private equity plays in shaping the market.
The project has informed their contributions of evidence to the CMA at various stages of its investigation.
Competition law experts respond to CMA investigation into vet bills
