Competition and Markets Authority investigation into the veterinary sector

The Competitions and Markets Authority (“CMA”) is an independent non-ministerial department that regulates competition in the UK. As a regulator, it is responsible for strengthening business competition and reducing anti-competitive practices.

The CMA holds the power to:

• Conduct investigations into entire markets if there are concerns about competition or consumer problems
• Monitor and regulate prices
• Impose fines for non-compliance
• Bring criminal proceedings against businesses and individuals that take part in cartels or anti-competitive behaviour.

Since the CMA launched a review of the veterinary sector in September 2023 it has continued to focus on veterinary practices as part of a nationwide ongoing market investigation into the supply of veterinary services for household pets in the UK.

Their ultimate goal is to ensure that pet owners are getting value for money as well having clear visibility on ownership of the practices they are visiting.

The investigation

When the CMA investigates, it focuses on the functioning of the sector. This includes large, medium and small groups as well as independent organisations within that sector.

The CMA has distinct legislative powers to force practices to provide information and documentation. They begin by asking for documents voluntarily, knowing that they have the power to compel the documents if the request is not acceded to.

Non-compliance with the CMA’s request for information and documents is in itself a criminal offence.

If you or your practice receives a document request from the CMA, there will be a deadline to respond by; the initial email will also give you the opportunity to request an extension to this deadline.

Once you have responded to the CMA’s initial email, confirming whether you need an extension of time, you will have until the deadline to provide detailed answers to each question and collate any supporting documents. The CMA will then consider the answers and documents provided and will either:

• Confirm it is satisfied with the response and take no further action
• Require more detailed information and supporting documentation
• Formalise the request and invite the business and its directors for a formal interview under caution.

What should you do if you’ve been contacted by the CMA?

If you have been contacted by the CMA, follow our top tips:

• Don’t panic!
• Seek legal advice to ensure reviewing and collating of supporting documents will help ensure you meet the CMA’s requirements and comply with section 174 Enterprise Act 2002.
• Be aware that if you do not comply with the CMA’s initial request to respond to their letter or email acknowledging the draft notice and confirming that you are able to provide the information requested by the stated date, this is a criminal offence and you could be prosecuted and fined.