Wednesday 10 July 2024

CMA publishes issues statement in household pets market investigation

 


 

The Competition and Markets Authority (CMA) has published its issues statement in its market investigation into the supply of veterinary services for household pets in the UK.

The CMA made the market investigation reference on 23 May 2024.

The CMA has identified the following initial high-level theories of harm:

1.       concerns about lack of effective engagement by pet owners in the choice of the best veterinary practice

2.       concentrated local markets

3.       incentives of large integrated groups to act in ways that reduce choice and weaken competition

4.       overpayment by pet owners for medicines or prescriptions

5.       an outdated regulatory framework.

The CMA has also identified some potential remedies that may help to address these issues if one or more adverse effects on competition are identified in the investigation. These could include:

1.       information transparency remedies such as mandating what information should be provided to customers, as well as how and when this should be provided

2.       price remedies such as imposing maxima for prescription fees, or maximum prices or mark-ups for other services

3.       market opening remedies aimed to lower barriers to entry or otherwise to promote competition in the provision of certain elements of veterinary services. Remedies in this category could include targeted structural remedies.

The CMA invites comments on the issues identified by 30 July 2024.

https://www.gov.uk/government/news/cma-takes-next-procedural-step-in-vet-services-investigation

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