The UK Competition and Markets Authority (CMA) is considering capping veterinary prescription fees as it digs deeper into the sector to address concerns that pet owners are being overcharged for treatment.
The CMA's formal investigation comes after it received 56,000 responses from pet owners, vets and charities following a review that began last year. The review aims to gather insights into whether consumers are overpaying for veterinary services and medicines.
The CMA highlighted that pet owners often struggle to afford vet bills and are not always provided with clear treatment options or pricing information. The British Veterinary Association (BVA) welcomed the review, describing the sector's regulation as “sadly outdated”.
The watchdog estimates that 16 million UK households have at least one pet. According to the Office for National Statistics, the cost of veterinary and other pet-related services has risen by about 50% since 2015, significantly exceeding the overall inflation rate.
One of the main concerns raised by the CMA is the consolidation of the veterinary market, as more than half of UK veterinary practices are now owned by just six large companies: CVS, Independent Vetcare Ltd, Linnaeus, Medivet, Pets at Home, and VetPartners. This consolidation may reduce consumer choice, as these companies often retain the branding of independently owned practices they acquire, which may create the “illusion of competition.”
The CMA’s investigation will focus on several key areas:
– Whether consumers receive sufficient information to make informed decisions.
– The impact of the limited choice of veterinarians in certain areas on pet owners.
– Profitability of veterinary business.
– Whether veterinary companies have the incentive and ability to limit consumer choice when providing treatments or services.
– The need for regulatory changes in the market.
Possible interventions by the CMA could include enforcing transparency in pricing and treatment information, imposing caps on prescription fees, and even forcing the sale or break-up of large veterinary companies.
“We've heard from people who are struggling to pay their vet bills, are potentially overpaying for medications and don't always know what the best treatment options are for them,” said Sarah Cardell, CEO of the CMA. “The message our vets have sent so far has been loud.” And it's clear – many pet owners and professionals have concerns that need further investigation.
Malcolm Morley, senior vice president of the BVA, expressed support for the investigation, stressing that the BVA had long raised similar concerns. He noted that independent veterinary practices often face higher wholesale drug prices than those available to consumers online, further complicating the pricing landscape.
The CMA's findings and any resulting actions have the potential to significantly reshape the veterinary market, with the aim of enhancing transparency, affordability and choice for pet owners across the UK.
