The Competition and Markets Authority (CMA) has removed requirements for multinational companies to disclose which veterinary practices they own, softening earlier proposals that would have forced vets to offer customers “a clear indication of corporate ownership”. The change comes after the threat of judicial reviews, according to the Guardian.
The CMA previously investigated vet practices, discovering cat and dog owners were at risk of being left worse off thanks to a lack of competition and murkiness around ownership, with many unaware leading vet surgeries were actually owned by private equity firms. The regulator found that the cost of small animal veterinary services rose by 63% between 2016 and 2023.
It also reported that 60% of veterinary practices are currently owned whole or in part by six large veterinary groups (LVGs), compared to 10% in 2013.
Corporates ‘allowed to hide’ behind brand names
Dr Iain McGill, a director of the PVA, told the Guardian: “This is bad news for pet-owners and their animals. Ultimately, large corporations would be allowed to hide the fact that they are the ultimate controller of local vet practices and operate behind sometimes misleading brand names.”
The CMA found that between January 2023 and July 2024, average prices at five LVGs were higher than average prices at independents, concluding that “the increases in average prices that occur following LVG acquisitions of independent FOPs are not wholly explained by improvements in the quality of services provided.”
Industry defends price rises
Giving evidence to the CMA consultation, Dr Rob Williams attributed the increases in prices to higher standards of care, technological advances and staffing costs, and not solely due to the rise in corporate ownership of veterinary practices.
A CMA spokesperson said: “It is critical that pet owners know whether their local practice is part of a national group or locally owned, and we are confident the changes we are making will achieve this. In future, all practices will have to make ownership links clear by using brand names that people recognise on signs and online. We will no longer have the unacceptable situation of people thinking they are using a local practice when in fact it is part of a bigger group.”
MPs warn of rural practice damage
The Environment, Food and Rural Affairs Committee said: “We welcome the Competition and Markets Authority’s work on rising prices, increasing consolidation, and the role of large corporate groups in the small animal market. Greater transparency and accountability are important. These reforms, however, must be carefully designed to avoid unintentionally further damaging rural practices and services, where provision is already fragile and competition is not the main issue to consider. Changes introduced in the name of competition must not come at the expense of access to care, the viability of mixed practices or animal welfare.”
The softened wording means practices will still need to make ownership links clear by using recognisable brand names on signs and online, but the mandatory disclosure of corporate ownership has been dropped. The final impact of the changes will depend on how the CMA enforces the new rules and whether pet owners see greater clarity in practice branding.
