The inquiry into the veterinary market, led by the Inquiry Chair, has been initiated in response to growing public concerns regarding the business practices of veterinary services. Despite the high regard for individual veterinarians, the investigation highlights issues stemming from the dominance of large veterinary groups, which now control 60% of the market. This shift has coincided with advancements in veterinary medicine that have increased costs, alongside a surge in pet ownership during the pandemic, particularly among first-time pet owners who may be unaware of the associated expenses.

The ongoing cost of living crisis has further exacerbated financial strains on pet owners, prompting the inquiry to critically examine the business practices within the veterinary sector. Competition law advisors are advised to pay close attention to the implications for large veterinary groups, as their market dominance may come under scrutiny. The inquiry aims to address pet owners' concerns while maintaining trust in veterinary professionals, emphasizing the need for transparency and effective communication in business practices.

Key areas of focus for the inquiry include enhancing transparency in pricing, ensuring a variety of service options, and examining the role of regulations in promoting fair competition. Currently, 84% of veterinary practice websites lack clear pricing information, making it difficult for pet owners to compare services. The inquiry seeks to improve pricing transparency, particularly for predictable services like vaccinations and neutering, and to clarify the quality of services offered by different practices.

Veterinary practices are required to charge prices that cover costs and allow for reasonable profits to ensure high-quality care for pets. However, significant markups on medicines—sometimes 3 to 4 times their purchase costs—create disparities with online pharmacies, where pet owners can find substantial savings. The inquiry will explore how these pricing practices affect competition and consumer choice, particularly as many pet owners remain unaware of their options for obtaining prescriptions for online purchases.

As the inquiry progresses, competition law advisors should monitor how proposed regulatory changes might impact competition among veterinary practices, especially regarding the potential for increased costs for smaller practices. The investigation has received positive feedback from stakeholders, indicating a collaborative approach as it moves towards its conclusion. If issues are identified, the focus will be on developing practical solutions that benefit veterinarians, pet owners, and the overall sector.