OFT to look at supply of public sector information

139/05 28 July 2005

The OFT has launched a market study into public sector information holders (PSIHs).

Many public bodies have a statutory obligation to collect information or do so as part of carrying out their functions. Often they may be the only body collecting and storing such information.

In 2003/4 it was estimated that the turnover of the larger PSIHs was in the region of £1bn. The total value of public sector information in the UK economy is much higher as the information is often reused as inputs for other companies products.

Examples of PSIHs include HM Land Registry which holds a property database with access to 20 million registered properties in England and Wales and the UK Hydrographic Office which holds navigational products and related information.

As well as making much information freely available some PSIHs sell on information either in its raw data form or as 'value added' information products involving further refinement of the raw data.

Some PSIHs compete with other private sector companies in the sale of 'value added' information. These competing companies have to buy the raw data on which their 'value added' products are based from the PSIH.

The study will look at whether or not the way in which PSIHs supply information works well for businesses. It will examine whether PSIHs have an unfair advantage selling on information in competition with companies who are reliant on the PSIH for that raw data in the first place.

To address this question the study will look at:

how the raw data that PSIHs collect is turned into 'value added' information
how pricing of raw data and access to it affects competition between PSIHs and private companies selling 'value added' information
what situations benefit from vertical integration in the provision of 'value added' information
the effectiveness of existing guidance and laws.

Penny Boys, OFT Executive Director, said:

'Information is critical in today's knowledge economy and this study will look to see whether there are any hindrances to the development of such information markets when public bodies are also competing to make returns on their own investment.'

The study will also consider the impact of regulations resulting from EC directives such as the Re-use of Public Sector Information Regulations 2005 which deal with how public sector bodies should respond to requests for the re-use of public sector information.

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