Joint CMA response labels remedies 'disproportionate'
One remedy has been described as 'anti-competitive' in the response.
A joint response to the Competition and Markets Authority (CMA) provisional decision report has criticised some measures as 'disproportionate' and detrimental to many in the veterinary industry.
Published on 14 November, the document raises significant concerns with the CMA's approach to medicine market remedies, particularly in regards to online pharmacies. It is signed by BVA, BSAVA, SPVS, VMG and BVNA.
The response warns that requirements to make pet owners aware that medicines can be bought cheaply online could threaten the veterinary sector. This remedy is being criticised as 'anti-competitive', since it would limit supply routes to 'a small number of online pharmacies'.
It has suggested this could be particularly detrimental to veterinary businesses which do not operate online pharmacies. The response warns that a focus on online pharmacies risks ignoring other appropriate and available routes for medicine supplies.
Data from the BVA's Voice of the Veterinary Profession survey found that 64 per cent of veterinary surgeons considered that directing clients to online pharmacies would negatively impact the financial sustainability of their practice.
The organisations have also voiced disapproval with a proposed cap on prescription fees, which would see practices charge a fixed rate of £16 per consult. The Voice of the Profession survey revealed that 65 per cent of veterinary surgeons considered the prescription price cap damaging to practice viability.
The response says that 'further refinement' is needed to ensure that the access price for veterinary care is not negatively impacted by this remedy. It suggests that changing the veterinary market in this way risks increasing the costs of common and high-volume access point professional services.
However, the organisations have remained largely supportive of many of the CMA's remedies.
Despite its criticisms, the response describes the provisional decision as 'more measured and proportionate' than those proposed in the CMA's working paper earlier this year. It notes that remedies previously flagged as burdens to veterinary practices had been modified or dropped entirely.
The response expresses support for requirements for practices to publish ownership information, standardised complaints processes, and veterinary legislative reform.
Rob Williams, BVA president, said: “The measures outlined in the CMA’s provisional decision report are much more measured and proportionate compared to earlier proposals and that clearly shows they have listened to our concerns.
“As vets, we welcome the measures that increase transparency and help us to better support our clients. However, it’s vital that the CMA gets the detail right or it risks unintended negative consequences.”
The full joint response can be read here.
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