Domain name
registrar GoDaddy has also petitioned the US Department of
Commerce, which has yet to approve the agreement, asking that the
deal be sent back to the ICANN Board.
"We will not sit back without a fight. This deal is outrageous.
It's monopolistic because it locks in price hikes and eliminates
good old-fashion competition. It's a mistake Secretary (Carlos)
Gutierrez can stop," said Bob Parsons, CEO and Founder of
GoDaddy.com.
His concerns relate to an agreement between ICANN, the body
responsible for the internet’s domain naming system, and VeriSign,
settling all pending legal action between the two and renewing the
registry’s contract to run the .com registry.
The new deal permits VeriSign to increase the price of domain
name registrations by 7% in four of the next six years. In the two
remaining years, VeriSign will only be able to raise prices if it
can show that the rises are necessary for security reasons.
It also gives VeriSign a presumptive right to renewal of the
.com registry, on the proviso that it complies with certain aspects
of the agreement.
ICANN's Board voted 9 to 5 in favour of the agreement with one
director abstaining, and is now facing calls to reconsider.
According to a petition lodged with the Board by the 19 firms,
the deal will have adverse consequences that are “far-reaching and
permanent”. The petitioners believe the agreement shows that ICANN
has failed to foster a market with appropriate controls on .com
registry pricing or to provide adequate regulatory oversight.
They call on the Board to reconsider the agreement in the light
of a new investigation by the Department of Justice into the
registry market.
“The failure to consider material information concerning the
potential adverse effects that the settlement would have on
competition is contrary to ICANN’s core values and would be harmful
to consumers,” says the joint filing.
Separately, domain registrar GoDaddy has written to the
Secretary of Commerce, Carlos Gutierrez, urging him to reject the
agreement. A group of registrars, including GoDaddy, have also sent
a joint letter to the Department of Commerce, asking that the
agreement be sent back to the ICANN Board.
