FIVP calls for urgent review of CMA remedies
“We expect the CMA’s proposed remedy package to have a disproportionately negative effect on independent businesses" - Rita Dingwall, Chair of FIVP.
The Federation of Independent Veterinary Practices (FIVP) has called on the Competition and Markets Authority (CMA) to urgently review its proposed remedies for the veterinary sector.
FIVP, which is a main party in the CMA’s market investigation, warns that the existing remedies will disproportionately impact independent practices and threaten their viability.
The organisation has particularly cautioned against the CMA’s approach to prescriptions and online pharmacies. Under the regulator’s current plans, veterinary professionals could be asked to direct clients to online pharmacies for ‘savings’ on their medications.
FIVP states that many online pharmacies are owned by large veterinary groups, which are taking this revenue from independently owned practices.
It explains that, especially for these independent practices, medicine sales from a vital part of their income. It is through medicine sales that these practices are able to offer veterinary procedures at more affordable prices.
This shift to online pharmacies could see independent practices forced to “repackage” their offerings to clients. While medicine costs may fall, a rise in professional fees could mean that, at best, overall costs to the client remain the same.
However, once increased administrative fees and the loss of income from medicines is factored in, FIVP estimates that overall prices could rise as much as 12 per cent over inflation.
FIVP’s Impact Assessment found that approximately 90 per cent of respondents disagreed with the CMA’s approach to online pharmacies. Nearly 95 per cent expected the remedies to negatively affect their finances, while 85 per cent said they would cause confusion and unexpected fees for clients.
Rita Dingwall, FIVP chair, said: “We expect the CMA’s proposed remedy package to have a disproportionately negative effect on independent businesses, potentially threatening the viability of community practices across the country. Our impact assessment survey found that independent veterinary business owners overwhelmingly disagreed with the CMA medicines remedies.
“As the CMA’s statutory deadline approaches, FIVP will continue to engage with the CMA to encourage a remedy package that will result in a fair market for all veterinary businesses and one that supports animal welfare”
FIVP’s full statement has been published here. You can also find FIVP’s full response to the remedies and its Impact Assessment on the FIVP website.
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