- Almost a third of UK’s 5,000 practices have been bought by six firms since 2013
British pet owners might be overpaying for medicines and prescriptions, Britain’s competition watchdog has said, as it considers launching a formal probe into the veterinary sector.
A Competition and Markets Authority (CMA) review launched in September over concerns that pet owners are being short changed found weak market competition, partly because of sector consolidation.
Almost a third of Britain’s 5,000 vet practices have been bought by six firms since 2013 – CVS Group, IVC, Linnaeus, Medivet, Pets at Home and VetPartners – according to the CMA.
CMA boss Sarah Cardell said: ‘Given these strong indications of potential concern, it is time to put our work on a formal footing.’
Last September, the CMA said it was looking into the veterinary market after concerns that pet owners might not be getting the best deals
The CMA will seek views from the sector on a potential formal investigation, and decide on its next steps after consultation closes on 11 April.
Following the CMA’s provision findings, Pets At Home shares were down more than per cent to 266.80p in morning trading on Tuesday, as CVS Group shares nosedived by 19.84 per cent,
Pets at Home said it is disappointed with the CMA’s findings and that it does not think its business model reduces competition.
A spokeswoman for the group said: ‘We are incredibly disappointed the CMA’s findings today do not fully reflect our unique business model of locally-owned vet practices.
‘Whilst our brand is national, our veterinary practices are led by individual entrepreneurial vets who have clinical and operational freedom.
‘They choose all pricing, products and services to ensure the best care for clients and their much-loved pets in their local area, which promotes competition in the market and helps to keep prices low.
‘We have been working closely with the CMA on their areas of concern and will continue to do so as their inquiry progresses to ensure the distinctiveness of our model is fully recognised.’
CVS Group said it had already put forward a package of possible remedies to address the CMA’s concerns along with certain other corporate groups.
‘CVS continues to believe this package could be adopted across the market and could address the CMA’s concerns more quickly than an 18-month investigation,’ it added.
Vet sector a ‘critical market’ for Britain’s 16m pet owners
CMA boss Cardell said the regulator had ‘heard concerns from those working in the sector about the pressures they face, including acute staff shortages’, but its initial findings meant further work was needed on a ‘critical market for the UK’s 16 million pet owners’.
She added: ‘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.
‘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.’
In response, president of the British Veterinary Association President Dr. Anna Judson said: ‘Rising prices are a concern for everyone but it’s vital to recognise there is no NHS for pets.
‘Whether they are employed by corporate or independently owned practices, vets deliver highly specialised, tailored care for the UK’s pets and the cost is a fair reflection of investment in medical equipment, supplies and medicines, and the time vet teams dedicate to the care of each patient.
‘We’re keen to see healthy competition and consumer choice and so we are already taking steps to support vet practices to be more transparent both in terms of costs and practice ownership.
‘It’s important that clients have as wide a choice of vet practices as possible so they can find a service that best suits the needs of themselves and their animals.
‘We will continue to engage constructively with the CMA by responding to this latest consultation and will continue to play a leadership role in driving positive change for vets and their clients.’
