OFT clears national address gazetteer plans

The consumer and competition authority said that although the venture "would create a monopoly in this market", it would be disproportionate to refer it to the Competition Commission. The project will combine the spatial address databases of Ordnance Survey and the Local Government Improvement and Development agency. The OFT decided to clear the venture because: - the government is the parties' largest customer and will continue to enjoy substantial buyer power and influence over the joint project; - there is limited opportunity for the private sector customers of the two parties to trade "one off against the other", and the size of the affected private sector market is relatively small; and - nearly all customers, both from the public and private sector, strongly support the creation of the new database. Communities and Local Government first revealed its plans to create one database for geo-referenced addresses in England and Wales in December. It said it wanted to ensure that there was "one definitive source of accurate spatial address data" and move away from the system under which local authorities and OS collect information separately. This type of data is used by the public and private sector to accurately locate addresses when delivering services such as public transport, road maintenance, utility management and emergency call-outs. Amelia Fletcher, chief economist for the OFT, said: "Comprehensive and accurate spatial addressing information is important in delivering front line public services, as well as for certain private sector customers, so any competition concerns resulting from the joint venture needed careful consideration. A merger to monopoly would normally warrant further investigation. "However, the government's buying power, combined with expected benefits from combining these two databases, made a reference to the Competition Commission disproportionate." A spokesman for CLG said it was "delighted" with the decision. "Not only will information be made free to all public services, it will bring big savings and efficiencies for private businesses that often have the burden of buying and comparing two address lists, instead of one," he said. "Work will now continue on setting up GeoPlace, the new venture responsible for the data." This article is published by Guardian Professional