Commercial use of public information

Launched: July 2005

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Purpose of the study

To consider whether the way in which Public Sector Information Holders (PSIHs) supply information works well for businesses; and to examine whether PSIHs have an unfair advantage selling on information in competition with companies that are reliant on the PSIH for the raw data.

(Study followed in-house work.)

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Findings

More competition in public sector information could benefit the UK economy
by around £400 million annually. Specifically:

1. A number of PSIHs compete with business in turning the raw information into value added products and services. This could enable PSIHs to restrict access to information provided solely by themselves.

2. Raw information is not as easily available as it should be, licensing arrangements are restrictive, and prices are not always linked to costs. PSIHs may be charging higher prices to competing businesses and giving them less attractive terms than their own value-added operations.

3. Much of the legislation and guidance which aims to ensure access to information is provided on an equal basis lacks clarity and is inadequately monitored. As a result the full benefits of public sector information are not being realised.

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Recommendations

The recommendations of the study were that PSIHs should:

1. make as much public sector information available as possible for commercial use/re-use

2. ensure that businesses have access to public sector information at the earliest point that it is useful to them

3. provide access to information where the PSIH is the only supplier on an equal basis to all businesses and the PSIH itself, and

4. use proportionate cost-related pricing and account separately for their monopoly activities and their value-added activities so that PSIHs can demonstrate they are providing and pricing information fairly and in a non-discriminatory manner and Government should enable the regulator (Office of Public Sector Information) to monitor PSIHs better, with improved enforcement and complaints procedures.

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Action following market study

1. Ongoing dialogue with Ordnance Survey (OS).

2. Work with HMT to produce clear and comprehensive guidance on charging for information.

3. Review changes and the effectiveness of our recommendations and if necessary propose legislation to realise the benefits of the recommendations.

Government response in June 2007 accepted all but two of OFT's recommendations:

• that PSIHs make unrefined information available for reuse - Government to report back in six months on the implications of these possible changes, and
  
  
• on accounting separation and pricing - Government to conduct further work on the economics of information pricing.

In February 2008, Government published an independent review of Models of Public Sector Information Provision via Trading Funds. Following this report the Government committed to:

• looking at public sector information held by trading funds to distinguish more clearly what is required by Government for public tasks, ensuring this information is made available as widely as possible for use in actual and potential downstream markets
  
  
• a pricing policy based on the principle that 'information collected for public purposes will be made available at a price that balances the need for access while ensuring customers pay a fair contribution to the cost of collecting this information in the long-term', and
  
  
• OFT engaged in a continuing dialogue with OS.

A new OS strategy was published alongside the Budget in April 2009, following input from OFT to the government's Trading Funds Assessment.

On 23 April 2009 the OFT issued a press release

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Market study details and report

Download the market study report 'The commercial use of public information' December 2006 (pdf 707 kb)

See press release 'OFT report finds public sector bodies cost economy half a billion in hidden information markets'. December 2006

Download annexes to report (all pdf files):

Annexe A: Survey of public sector information holders (297 kb)
Annexe B: Survey of businesses that use public sector information (365 kb)
Annexe C: UK case studies (332 kb)
Annexe D: Environment Agency case study (151 kb)
Annexe E: Local authorities and NHS bodies (214 kb)
Annexe F: International case studies (234 kb)
Annexe G: Economic value and detriment analysis (491 kb)
Annexe H: The legal framework (327 kb)
Annexe I: Background to cost allocation (188 kb)
Annexe J: Organisations that were consulted (68 kb)
Annexe K: Glossary (82 kb)

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Background information

Market study launched - see press release

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