Following announcements made towards the end of last year, the Competition and Markets Authority (“CMA”) has today formally launched its market study into the private dentistry market in the UK. The study will focus on the provision of private dental services – including preventative, clinically necessary and cosmetic treatments – in the United Kingdom, concluding with a final report by the statutory deadline of 4 March 2027.
What will the CMA be looking at?
In assessing whether there are features of the market that are not working well for consumers, the CMA intends to investigate five key issues:
- The consumer journey and choice: whether consumers have choice between dental practices and between treatments;
- Competition between dental practices: how, and the extent to which dentists compete to win and keep customers;
- Market conduct / practices: whether dental practices engage in any unfair/ anticompetitive practices;
- Regulatory frameworks: the extent to which the regulatory framework and their enforcement support competition and consumer outcomes (noting the devolved nature of these frameworks across the UK);
- Pricing and profitability: including how prices have moved in line with inflation, and how profitability of dental practices is driven by different financing, corporate structures, and/or business models.
Process and possible outcomes?
The CMA has set out a roadmap as to how it intends to carry out the market study. The study is to be carried out following the revised process for conducting market studies and investigations, the relevant provisions in the Enterprise Act 2002 having been amended by the DMCCA.
The CMA has also made clear that it intends to move at pace, in line with all “4Ps” framework, with the focus being on pace, predictability, proportionality and process. Having already been engaging with the key stakeholders and the market informally, the announcement today triggers statutory time limits requiring publication of a market study report within 12 months setting out its findings and actions (if any) the CMA proposes to take. In line with its 4Ps framework though, the CMA has said it will consider taking any actions – which would include taking any specific consumer and/or competition enforcement action – before concluding the study.
On possible outcomes, the CMA has said that depending on what the evidence shows the CMA’s market study could lead to a range of outcomes – ultimately aiming to ensure people have access to detailed, clear, and timely information, enabling them to make the best possible choices. This could include recommendations to governments to change regulation of the sector, direct action from the CMA (including consumer and/or competition enforcement action), or new guidance to help ensure businesses are clear on their obligations. The review may also help inform or shape future policy in the different nations of the UK.
Commentary
The dentistry market has been on notice for a while now that the CMA intended to subject it to a market study, so should come as no big surprise.
In terms of the type of issues the CMA is likely to be focussed on and possible outcomes, there are obvious parallels to the CMA’s ongoing market investigation into veterinary services. This is now in its final stages with a detailed set of remedies that are likely to fundamentally change how that market is structured and operates. For example, these remedies have included greater transparency of pricing, requirements on veterinary practices to provide clear information to customers, and a price cap on prescriptions.
How should the sector engage with the CMA as part of this process?
The immediate next steps will involve a process of information gathering and market engagement by the CMA. The CMA is holding a webinar on 18 March and has issued calls for evidence from consumers and dentist professionals. It will also be looking to engage with the dentistry practices themselves, their investors / owners, with insurance providers and other businesses engaged in the sector.
