The CMA launched a review last year to ask people if they had any concerns that they could be paying too much, and received 56,000 responses from pet owners, vets and charities.
Earlier this year it flagged concerns that pet owners might not be getting basic information like price lists online and were not always informed of the cost of treatment at a vets before agreeing to it.
More than half of UK vet practices are owned by a handful of larger businesses, something the watchdog says may incentivise some to act in ways which reduce choice.
The CMA is now launching a formal investigation, which means it could intervene directly in the market in the future.
The regulator outlined three tips for pet owners when looking for treatments:
Look further than the closest vet as fees and services differ between practices
Ask if there are other treatment options
If the treatment is not urgent, consider buying medication elsewhere such as an online pharmacy or specialist pet shop
“The message from our vets work so far has been loud and clear – many pet owners and professionals have concerns that need further investigation,” said Sarah Cardell, the CMA’s chief executive.
“We’ve heard from people who are struggling to pay vet bills, potentially overpaying for medicines and don’t always know the best treatment options available to them,” she said.
“We also remain concerned about the potential impact of sector consolidation and the incentives for large, integrated vet groups to act in ways which reduce consumer choice.”
The watchdog said the inquiry would look at:
whether consumers were getting the right information to make informed decisions
if a limited choice of vets in some areas was affecting pet owners
the level of profits earned by vet businesses
whether vet businesses have the incentive and ability to limit consumer choice when providing treatments or services
whether the regulation of the market needs changing
The formal investigation means the CMA could step in and force companies to make changes.
It said possible remedies could include forcing firms to provide certain information to consumers, imposing maximum prescription fees, and ordering the sale or break-up of businesses.
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