Justice Department Reaffirms Veterinary Accreditation Standards and Procedures Are Subject to Antitrust Scrutiny
Today, the Justice Department filed a statement of interest in a private lawsuit challenging accreditation standards and procedures employed by the American Veterinary Medical Association (AVMA). The statement of interest explains that professional accreditation societies, like the AVMA, cannot erect anticompetitive hurdles that reduce competition by restricting the number of veterinary providers entering the profession.
“Pets and animals give us so much in life and form the backbone of American food security, but their healthcare needs can add up over time,” said Deputy Assistant Attorney General Dina Kallay of the Justice Department’s Antitrust Division. “The Justice Department is committed to supporting pet owners, livestock farmers, and aspiring veterinarians by ensuring that accreditation standards and procedures do not unnecessarily restrict competition in veterinary education and services. Free markets succeed when there is robust competition unhindered by unnecessary restrictions. Veterinarian services are no exception to this rule.”
The rising cost of veterinary services threatens livestock farmers and pet owners’ ability to afford healthcare for their animals. Yet, despite growing population, for decades the United States has had only about 34 accredited veterinary colleges, all solely accredited by the AVMA. In this lawsuit, an accredited veterinary school alleges that the AVMA has effectively reinterpreted its research accreditation standard to require schools to adopt a high-cost research model with an on-site teaching hospital. That policy, the plaintiff alleges, not only jeopardizes its accreditation, but also prevents new veterinary colleges from opening and unreasonably raises the cost of veterinary education.
While taking no position on the plaintiff’s claims, the Justice Department’s statement of interest explains that, when establishing accreditation standards and assessing conformance with them, professional associations must comply with the antitrust laws. Accreditors, which typically consist of interested market participants who develop standards in closed doors, face an inherent conflict of interest when regulating admission into a profession. Their professional and occupational restrictions can unnecessarily impede market entry, increase costs, stymie innovation, and otherwise harm Americans. To safeguard against these anticompetitive practices, the antitrust laws have long scrutinized self-regulation by professional and trade associations and emphasized the importance of procedural safeguards in standards development. As the statement of interest explains, accreditation practices are not exempt from the antitrust laws merely because states require veterinarians to graduate from accredited schools and the AVMA has been recognized as an accreditor under federal law.
The Antitrust Division routinely files statements of interest and amicus briefs in federal court where doing so helps protect competition and consumers, including by encouraging the sound development of the antitrust laws. These statements are publicly available on the Division’s website.
