- Almost a third of the UK’s 5,000 practices have been bought by six companies since 2013.
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British pet owners could be overpaying for medicines and prescriptions, Britain’s competition watchdog has said, as it considers launching a formal investigation into the veterinary sector.
A Competition and Markets Authority (CMA) review launched in September over concerns that pet owners are being defrauded found weak market competition, partly due to consolidation in the sector.
Almost a third of Britain’s 5,000 veterinary practices have been bought by six companies 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 investigating the veterinary market due to concerns that pet owners may not be getting the best deals.
The CMA will seek industry views on a potential formal investigation and decide its next steps once the consultation closes on April 11.
Following the conclusions of the CMA provision, Pets at home share fell more than a percent to 266.80 pence in morning trading on Tuesday, as CVS Group Stock plummeted 19.84 percent,
Pets at Home said it is disappointed with the CMA’s findings and does not believe its business model reduces competition.
A spokeswoman for the group said: “We are incredibly disappointed that today’s findings from the CMA do not fully reflect our unique business model of locally owned veterinary practices.
‘While our brand is national, our veterinary practices are led by individual entrepreneurial veterinarians who have clinical and operational freedom.
‘They choose all prices, products and services to ensure the best care for customers and their beloved pets in their local area, which promotes competition in the market and helps keep prices low.
“We have been working closely with the CMA on their areas of concern and will continue to do so as their investigation progresses to ensure the distinctiveness of our model is fully recognised.”
CVS Group said it had already submitted a package of potential solutions to address the CMA’s concerns alongside other corporate groups.
“CVS continues to believe that this package could be adopted market-wide and could address the CMA’s concerns more quickly than an 18-month investigation,” he added.
The veterinary sector is a ‘critical market’ for Britain’s 16 million pet owners.
CMA boss Cardell said the regulator had “heard concerns from those working in the sector about the pressures they face, including severe staff shortages”, but its initial findings meant it was necessary to continue working in a “critical market for the 16 million pet owners in the UK. .
He added: “The unprecedented response we received from the public and veterinary professionals demonstrates that sentiment on this issue is high and why we were right to investigate it.”
‘Our review has identified multiple concerns with the market that we believe should be investigated further.
‘These include pet owners who have difficulty accessing basic information such as price lists and prescription costs, and potentially overpaying for medications.
“We are also concerned about weak competition in some areas, driven in part by sector consolidation and incentives for large corporate groups to act in ways that may reduce competition and choice.”
Responding, British Veterinary Association president Dr Anna Judson said: ‘Rising prices are a concern for everyone, but it is vital to recognize that there is no NHS for pets.
“Whether working in corporate or independently owned practices, vets provide highly specialist and personalized care for UK pets and the cost is a fair reflection of the investment in medical equipment, supplies and medications, and the time they spend. veterinary teams dedicated to the care of each patient.
‘We are keen to see healthy competition and choice for consumers, so we are already taking steps to help veterinary clinics become more transparent both in terms of costs and ownership of the clinic.
‘It is important that clients have the widest possible variety of veterinary clinics so that they can find the service that best suits their needs and those of their animals.
“We will continue to engage constructively with the CMA in responding to this latest consultation and will continue to play a leading role in driving positive changes for vets and their clients.”