Weather forecast data made available – Commission frees up meteorological market
Published09 Sep 1997
As part of a settlement with the Commerce Commission, the Minister of Transport, Jenny Shipley, and MetService yesterday changed their meteorological services contract to ensure that it did not breach the Commerce Act.
Commission Chairman Dr Alan Bollard said that the Commission had been concerned about how the contract limited access to the meteorological data on which weather forecasts are based.
There are a number of new competitors wanting to enter the market, and the changes to the contract will make it easier for them. Competitors to MetService will now have free access to the data gathered by MetService to produce forecasts for media and other purposes.
Contrary to comments attributed to MetService in the media this morning, the Commission did find evidence that MetService denied its competitors access to weather observations. The issue was not whether competitors should have access to MetService forecasts, but how they should have access to meteorological data from which to make their own forecasts.
The Commerce Act applies here because it covers central and local government organisations when they are engaged in trade. It prohibits a business that is dominant in a market using that dominance anti-competitively.
In general terms, there are two meteorological markets in New Zealand. That for meteorological data and that for weather forecasts. MetService operates in both markets, and the Minister of Transport is required by law to arrange for the collection of data necessary for weather forecasting in New Zealand.
In the Commission's view, MetService is dominant in the market for meteorological data because it is not economically viable for a competitor to install the specialist radar, automatic weather stations and other equipment necessary to gather the data.
Under the terms of the amended contract, MetService has agreed to competitor's accessing, via the Internet, the data it collects with public funds.
In the forecasting market, MetService competes with other forecasters to produce and sell weather forecasts. As an example, Radio New Zealand now draws its forecasts from a new independent forecaster.
Dr Bollard said that the Commission was pleased that the forecasting market was at last becoming more contestable.
He also said that the Commission will continue to monitor competition in the meteorological markets. If anti-competitive restrictions are put on data, or any other possible breaches of the Act occur, then the Commission will have to consider further enforcement action.
