CMA Sidesteps Market Power as Pet Owners Pay the Price, Warns Balanced Economy Project

The Competition and Markets Authority (CMA) concluded its investigation into veterinary services for household pets in the UK, after an independent inquiry group found that the current system is leaving pet owners in the dark. A lack of information that helps people make informed decisions is leading to weak competition and high prices.

Claire Godfrey, Executive Director of the Balanced Economy Project: "The CMA’s recommendations have completely side-stepped tackling the concentrated market power a handful of global finance firms have in the veterinary sector. Remedies that focus on transparency rather than structural change could still send the wrong signal that it is “business as usual”. Proof will be in how the remedies impact the private equity model and its actions in market, but essentially, with the structural integrity of roll-up acquisitions unaddressed, these dominant firms can continue to entrench their dominant position in the sector using their market power to jack up prices virtually uncontested. 

Instead, the CMA should use its regulatory teeth to tighten merger controls, breakup firms that abuse their dominance, and investigate the way in which powerful global finance firms are monopolising veterinary and other sectors in the economy, entrenching their power and rinsing consumers to make excessive profits."