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outdated regulatory framework.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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