Introduction 

Following conversations with stakeholders and a consumer complaint survey, the Netherlands Authority for Consumers & Markets (“ACM”) has published their research methods for investigating the veterinary market, which focuses on medical care for pets (link). The ACM aims to publish a final report at the end of 2025 with findings and recommendations. The market investigation follows a request from the State Secretary of Agriculture, Fisheries, Food Security and Nature to examine the range of choices available to consumers and the competition between veterinary practices, taking into account the Ministry’s investigation into veterinary pricing practices (link).

What is the ACM concerned about?

As outlined in the published research method (link), the ACM is mainly concerned about the reduced choices for consumers and rising prices for vet treatments. The ACM believes this issue may stem from limited information on prices and options, increased pressure on the veterinary sector and takeovers by larger corporations. The ACM also states that the pressure on the sector might be due to the increased demand for pet healthcare, combined with a shortage of veterinarians, who increasingly work part-time. 

According to the ACM, reduced competition in the market may be a result of larger chains acquiring practices and smaller practices referring emergency cases to hospitals or larger practices. This negatively affects the functioning of the market. The ACM has yet to issue any formal findings. Therefore, the purpose of their investigation is to determine whether competition is negatively affected, identify the specific markets impacted and assess the extent of this impact. The ACM’s investigation focuses on three topics:

1. The decision-making process and information position of pet owners;
2. Options for pet owners in specific areas;
3. The business operations and strategies of veterinary service providers.

The ACM is planning to conduct interviews with consumers, practitioners, and other stakeholders. It will also conduct regional case studies on mergers and price differences.

Furthermore, the ACM believes that strategies employed by larger corporations, especially those that are private equity-owned, such as maximizing revenue and acquiring practices in specific areas, could reduce consumer choices and increase prices. They plan to investigate this as part of their market study.

Towards a Dutch New Competition Tool?

The ACM has the power to conduct market studies, but lacks the power to impose obligations based on the findings of these studies. They can only provide recommendations, for instance, on additional regulation that the ACM deems necessary. However, the ACM would like to see this change and has advocated for a New Competition Tool (“NCT”) to address this (perceived) regulatory gap. The NCT would empower the ACM to impose regulations on a specific market and/or companies even when no infringement has been established, but only in circumstances where an activity is hindering the market. This reform would significantly lower the bar for the ACM to regulate markets.  For more information on the potential Dutch New Competition Tool, see this link.

Call-in powers 

In addition to the NCT, the ACM is seeking call-in powers for mergers below the thresholds. According to the draft explanatory note, this proposal has been motivated by the acquisition of veterinary practices and general practitioners by private-equity corporations. Currently, there is a proposal to amend Dutch legislation, specifically the Dutch Competition Act, making a call-in power possible for the ACM (link, in Dutch). This proposal would give the ACM the possibility to review acquisitions below the threshold, significantly increasing their authority to investigate mergers that they believe affect competition. The ACM may view a call-in power as a solution to address the acquisition of veterinary practices and general practitioners by private-equity corporations.

Final Remarks 

Will the ACM’s report find that additional measures are necessary to regulate the veterinary sector? We will only find out when the report is released at the end of 2025.  It will be particularly interesting to see what the ACM will do with any of the report's findings, given that it does not yet have the NCT in its regulatory toolbox. 

If the legislative proposal on the call-in power is passed, it is likely that the ACM will apply the report's findings to mergers in the veterinary sector, especially when larger corporations with an existing market share in the veterinary sector take over additional practices. 

Furthermore, the investigation into the veterinary sector might serve as a blueprint for future investigations of the ACM under the NCT. Therefore, it will be interesting to see how the ACM handles this investigation and what lessons can be learned for future investigations.

For more information or further guidance in this area, please contact Pauline Kuipers and Joost van Roosmalen. 

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