The French Competition Authority published its opinion on the conditions for setting the prices of veterinary medicines and the evolution of veterinary care costs, following a request by the Minister of the Economy, Finance and Industrial and Digital Sovereignty on 18 June 2024.
The Authority highlighted developments in the veterinary sector, notably the rise of corporate veterinary clinic networks. These networks, the Authority notes, have contributed to an overall increase in the cost of animal care. High concentration levels in certain departments and municipalities may amplify these effects, prompting the Authority to signal its intention to remain vigilant regarding the structural impact of mergers and acquisitions in the sector. It may consider ex post control of acquisitions where competitive concerns arise, ensuring that consolidation does not undermine market competition.
In the veterinary medicines market, the Authority observed the growing influence of central negotiating bodies in commercial discussions with laboratories. While some laboratories and wholesale distributors have raised concerns about high discount rates and potential influence on veterinary prescriptions, the Authority’s analysis found no competition concerns at this stage. Commercial conditions remain largely driven by manufacturer negotiation and market competition, and the criteria for establishing economic dependence of laboratories on central negotiating bodies are not met.
The Authority also reviewed the ethical rules governing veterinary practice, noting that while some restrictions are justified in the public interest, other provisions appear unnecessary and may limit professional autonomy.
This opinion aligns with previous coverage by Antitrust Intelligence, which has highlighted the increase scrutiny over this sector by competition authorities across Europe. Recent Antitrust Intelligence articles have pointed out that while corporate consolidation may have increase prices, a further control of future acquisitions may not prevent further raises in prices.
