Source: Sharecast
At 1250 BST, Pets at Home shares were up 4.9% at 226.60p, while CVS Group was off earlier highs but still up 1.3% at 1,417.69p as the provisional findings of the CMA's two-year investigation and suggested remedies threw up no surprises.
The watchdog said pet owners are often unaware of the prices of commonly used services or whether their local practices are part of large national chains.
They also have no effective way of comparing prices when they get a pet or move areas and could be paying twice as much for commonly prescribed medicines from vet practices than they would online, the CMA said.
In addition, it found that pet owners often receive no written estimate for treatment and are unable to tell if they are getting good value for money from pet care plans.
The watchdog also said customers have no effective way to complain when things go wrong.
It pointed out that average vet prices rose 63% between 2016 and 2023, well above inflation.
The watchdog also found that pet owners pay 16.6% more on average at large vet groups than at independent vets.
The CMA proposed 21 measures to address its concerns. These include making vets publish comprehensive price lists, being clear if they are part of a large group, and making sure that their policies and processes allow vets to act in the best interests of pets and pet owners.
Martin Coleman, chair of the Inquiry Group, said: "Pet owners are often left in the dark, not knowing whether their practice is independent or part of a chain or what a fair price looks like. They are sometimes committing to expensive treatment without understanding the price in advance. And they do not always feel confident asking for a prescription or buying medicine online - even when it could save them hundreds of pounds.
"Even where pet owners could access some of this information, it is difficult for them to compare prices and services - despite the fact that, in most of the country, there are several local practices they could choose between.
"We are proposing major reforms aimed at bringing about a transformation in the experience of pet owners and empowering them to make the best choices for their circumstances."
Responding to the CMA's findings, CVS said it welcomed the additional certainty provided by the announcement.
"We are pleased to see that the CMA has considered our and the veterinary profession's feedback on the initial 28 remedies proposed in May 2025, which have been refined to 21 with no new remedies introduced," it said.
"Whilst we do not believe that all of these remedies are fully justified, we will be working with the CMA to refine the remedies package to ensure it is workable and deliverable and have plans in place to implement them, including joint branding of our practices and the publishing of standardised price lists."
Derren Nathan, head of equity research at Hargreaves Lansdown, said the CMA’s provisional decision "shouldn’t provoke too many barks and howls from the major operators".
"Price caps look to be limited to prescriptions with an upper limit of £16 per vet slip, around 20% below the current average," he said.
"Other measures include a regulated comparison website, comprehensive price lists, upfront cost estimates for treatment plans, and transferable prescriptions allowing pet owners to shop around for better prices online. More visible signposts on practice ownership are also in the mix, allowing better information for animal lovers who prefer to give their business to local independent providers.
"The outcome is broadly as expected, but with no major negative surprises should alleviate the uncertainty that’s been weighing on consumer and investor sentiment. That’s seen a share price increase for Pets at Home, with its growing veterinary offer, and a bigger spike for CVS Group, which is more of a pure play on the industry. That said, the line under the matter has only been pencilled in so far. A further consultation is underway and a deadline for publication of the final decision has been set for March 2026."
The six large veterinary groups are CVS, IVC, Linnaeus, Medivet, Pets at Home and VetPartners.
