Section Menu

Market Study on Commercial Use of Public Information (CUPI)

The OFT announced their market study into the commercial use of public information in July 2005 and published its report on 7 December 2006. The government responded in June 2007. See linked document on the right.

Background

One of the OFT’s current priorities is the interaction between government and markets and specifically the impact the public sector can have on the way markets work. In the case of public sector information within the economy, OFT estimated that the market could increase from £400m to over £1billion annually.

There are many public sector bodies in the UK which collect and produce a range of information in the course of their activities. For example Ordnance Survey is responsible for definitive surveying and topographical mapping in a variety of formats, and the Met Office provides forecasts and information to allow others to make decisions about the weather.

Public sector information holders (PSIHs) can be the only source for much of this raw data, and although some make this available to businesses for free, others charge. A number of PSIHs also compete with businesses in turning the raw information into value-added products and services.

OFT Market Study

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

The report also found that 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. The full OFT report and annexes can be found at the OFT web site.

Government Response

The government welcomes the recommendations, and accepts the majority. There are some that require further work. Full details are given in the published government response document available for download on the right.

Analysis of Pricing Models

As part of the response, the Government commissioned Cambridge University to do some analysis specifically around the pricing of public sector information held by trading funds[i].

This analysis has been released today as a Study Report (11 March 2008 - see Related Documents), and it sets out estimates of the costs and benefits of marginal-cost pricing, based on the assumptions used by the Cambridge team and the data they were able to collect.

Going forward, the Government will look closely at the 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.

In the lead up to the next spending review, it will also ensure that it is priced appropriately. The underlying principle will be 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.