In addition to the price caps, the CMA is looking into a ban on bonuses linked to offering specific treatments. It said on Thursday that it would look into a ban on any policies that would curtail vets' "clinical freedom". The watchdog also found there was a lack of transparency around the cost of treatments and what choices were available.

It found that businesses were marking up medicine prices, sometimes by as much as four times the purchase cost. In a list of potential remedies, the CMA said vets could be forced to create a clear online display of prices for medicines, surgeries, treatments and out-of-hours help. The working paper also suggested that the mark-up charged on pet cremations, sold to customers at a "vulnerable moment", might be capped.

The watchdog has also suggested a comparison website making it compulsory for clinics to inform owners if cheaper options are available. Last month, a BBC investigation found that some vets felt they were under pressure to "generate income". The BBC spoke to vets working for IVC, which owns more than 900 surgeries, who all say they are monitored and set targets by the company.

IVC said the interests of the pets was always the first priority. The CMA expects to release a provisional report on what measures it will take in the summer months, with a final decision by November.