The Federal Trade Commission (FTC) is looking into the consolidation of veterinary services due to rising costs in pet care, often referred to as “petflation.” Recently, the FTC has issued civil investigative demands (CIDs)—these are formal requests requiring companies involved in the merger of Covetrus and MWI Animal Health to submit documentation and information, as part of a probe into potential antitrust issues.
Bad news for dog moms. There is an affordability crisis for pets.
Lifetime care for a dog currently costs about $35,000…yeah 😬😬😬
More competition in the market is needed to lower the cost of pet ownership.
My latest editorial is @DailyCaller: pic.twitter.com/tUEJD4TszU
— John Schweppe🇺🇸 (@JonSchweppe) July 9, 2026
If the merger goes through, the number of major veterinary drug distributors would likely drop from three to two, giving the merged Covetrus and MWI companies control over about 75% of the market. Local antitrust lawyer Joel Thayer pointed out that such a move could significantly alter the veterinary drug distribution landscape, suggesting that one firm could dominate pricing and terms.
“Instead of a 3-2 situation, we might end up with a 2-1. Basically, one firm would set all the conditions and prices for veterinary services,” he explained.
Thayer believes the anticipated market share exceeds historical benchmarks that usually trigger antitrust alarms. He referenced a standard where a 30% market share is considered highly concentrated, noting that a 75% share indicates a near monopoly. This alludes to a Supreme Court ruling from 1963, which assumed that mergers resulting in such concentration are likely to reduce competition unless proven otherwise. Although the current legal framework takes wider competitive factors into account, that ruling is still pivotal.
According to Thayer, the FTC’s action through CIDs signals their serious apprehensions regarding the merger.
In cases like this, under the Hart-Scott-Rodino (HSR) Act, the FTC will first conduct a review and, if unresolved, can advance the investigation by issuing CIDs to probe further.
Owning a pet is becoming difficult due to the cost of caring for the animal
This man took his dog to the vet for an ear problem. It cost me $725 just to have a basic ear problem and another $425 just to remove the tartar.
This is all thanks to private equity… pic.twitter.com/bC4qtVe8Es
— Wall Street Apes (@WallStreetApes) June 30, 2026
“The move towards CIDs indicates significant concerns, and rightly so,” Thayer said, mentioning that the deal is “essentially a large merger.”
If the FTC concludes that the merger breaches federal antitrust laws, it has the authority to sue in federal court to halt the transaction under Section 5 of the FTC Act.
This investigation coincides with worries about increasing veterinary fees causing pet owners to delay or skip necessary medical care for their animals, even leading some to surrender pets to shelters.
According to a national survey conducted by PetSmart Charities and Gallup, around 52% of pet owners have avoided or passed on veterinary care over the past year, primarily due to costs, as reported by USA Today.
Paws Chicago, one of the largest no-kill shelters, has seen a 28% uptick in pet surrenders in 2026, attributing this rise partly to soaring medical expenses.
When considering the potential intervention by the Trump administration to block the merger, John Schweppe, a former FTC senior policy advisor and now a senior advisor at the American Principles Project, commented that such action would align with the administration’s broader efforts to make living costs more manageable.
“Blocking near monopolies from driving up prices for family pets would be a significant triumph for the Trump administration as it aims for affordable living. If the FTC finds credible evidence of antitrust violations, they absolutely should pursue legal action to prevent the merger, which seems quite likely. It would be a win for the majority of American families that own pets,” Schweppe stated.
Taking your pet to the vet costs more than taking yourself to the doctor, and your pet won’t even have to deal with student loans or ruin your credit score. The cost of a regular checkup for your cat shouldn’t be the same as the down payment on a used Honda.
— S★ (@xxyllinn) July 28, 2026
Schweppe’s remarks come at a time when veterinary care costs are soaring, having increased about 60% since 2016, surpassing general inflation rates.
A study by the American Society for the Prevention of Cruelty to Animals (ASPCA) found that some pet owners are giving up their pets due to financial constraints in accessing veterinary care.
Gallup statistics indicate that the lifetime cost of owning a dog has surged to roughly $35,000, and cat ownership costs aren’t far behind, with 22% of pet owners currently holding over $2,000 in pet-related debt, according to a public opinion poll.
