Competition Commission to examine animal medicines
A Competition Commission inquiry into the distribution
of veterinary medicines has been ordered by the director-general of fair
trading, Sir John Vickers.
The £200m-a-year market has been referred to the
Competition Commission after the OFT found evidence that prices in the
United Kingdom are substantially higher than in other European countries.
Complaints have been received both from farmers’ groups and individual
consumers.
The OFT’s preliminary investigation also gave rise
to further concerns. In particular, the investigation revealed a lack
of transparency in prices because animal medicines are often dispensed
in the course of veterinary treatment without being separately itemised.
It also found evidence that manufacturers were reluctant to supply veterinary
pharmacies. Increased supply through pharmacies would allow price competition
between them and veterinary surgeons, the OFT believes.
Sir John said: “I am concerned by the high level
of prices for prescription-only veterinary medicines and about possible
restrictions on supply. It seems that competition in the market may not
be working well. It is now for the Competition Commission to examine the
market in depth and how it is serving the needs of farmers and the public.”
The commission has 15 months to report to the Secretary
of State for Trade and Industry on whether a complex monopoly exists in
the sector and, if so, whether the situation is being exploited, and whether
the monopoly operates, or may be expected to operate, against the public
interest.
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