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Comment/Reply Periods (*)Important Information Links
Comment Open:16 May 2012
Comment Close:6 June 2012
Close Time (UTC):23:59 UTCPublic Comment Announcement
Reply Open:7 June 2012To Submit Your Comments (Forum)
Reply Close:28 June 2012View Comments Submitted
Close Time (UTC):23:59 UTCReport of Public Comments
Brief Overview
Originating Organization:ICANN
Categories/Tags:

Contracted Party Agreements

Purpose (Brief):To receive public comment for Board consideration on the Proposed Revised Process for Handling Requests for Removal of Cross-Ownership Restrictions on Operators of Existing gTLDs.
Current Status:

Existing registries do not currently have a process to seek removal of cross-ownership restrictions related to names in the TLDs they operate.

Next Steps:

Following Public Comment, staff will summarize and provide to Board for consideration of revised proposal.  The Board will then take action on the Proposal.

Staff Contact:Kurt Pritz, Sr. VP, Stakeholder RelationsEmail:kurt.pritz@icann.org
Detailed Information
Section I: Description, Explanation, and Purpose

To seek public comment on a proposed process whereby existing registries may ask to amend their agreements so that they can vertically integrate with respect to selling domain name registrations in the TLDs that they operate.

Section II: Background

On 20 June 2011, ICANN approved a process, by which existing gTLD registries could request relief from cross ownership restrictions on registrars to sell domain names in new gTLDs (see http://www.icann.org/en/resources/registries/removal-cross-ownership).  The recommendation was based on extensive independent analysis and community discussion.

The registry agreements that are currently in place have cross ownership restrictions. The Board resolution approving the process stated, “consideration of modification of existing agreements to allow cross-ownership with respect to the operation of existing gTLDs is deferred pending further discussions including with competition authorities.”

That process did not allow the lifting of restrictions on the existing gTLD registries from owning or controlling a registrar that sells domains in their own existing registries (see http://www.icann.org/en/minutes/resolutions-20jun11-en.htm).

In preparation for lifting this last set of restrictions, exchanges have occurred with competition authorities that have expressed interest in this issue. With an understanding and consideration of the concerns and issues raised by those authorities relating to market power, ICANN is now ready to post a revised process that would allow existing registry operators to request removal of cross-ownership restrictions for the gTLDs that they operate.

Commencing a public comment period on the proposed revised process at this time is intended to solicit community input for Board consideration.  The proposed revised process is posted in redline against the process that was approved on 20 June 2011.

Section III: Document and Resource Links
http://www.icann.org/en/resources/registries/proposed-removal-cross-ownership-16may12-en.pdf [PDF, 304 KB]
Section IV: Additional Information

None

(*) Comments submitted after the posted Close Date/Time are not guaranteed to be considered in any final summary, analysis, reporting, or decision-making that takes place once this period lapses.


Please click here to download a copy of the PDF below.Corss Ownership.pdf

PDF
nameALAC Statement on the Proposed Revised Process for Handling Requests for Removal of Cross-Ownership Restrictions on Operators of Existing gTLDs.pdf

Corss Ownership.pdf


First Draft (

4

3 June 2012) by Alan Greenberg

The ALAC and At-Large have multiple opinions on whether the removal
of Cross-Ownership Restrictions for gTLD Operators will be to the
benefit or detriment of users, or in fact, the domain ecosystem.
There is, however, a unified position that whatever the environment
is, with certain constraints, there should be a level playing field
for all gTLD operators.

As such, the ALAC supports the removal of cross-ownership constraints
for existing gTLD operators.

Nevertheless, the ALAC does have one concern with the proposal, and
that is the option for existing gTLD operators to transition to the
new gTLD agreement. That transition would be subject to limits
related to competition issues raised by the removal of the
cross-ownership restrictions. The document is silent on other results
of such a transition, and particularly the removal of price caps on
existing operators.

The ALAC does not believe that there is sufficient proof at this time
to indicate that the new gTLD environment will so significantly
change the gTLD market so that price caps are no longer required for
the dominant gTLDs. As such, no change driven by the removal of
cross-ownership restrictions should at the same time remove the price
caps in the current agreements for dominant gTLDs without substantive
community involvement.

 

Second (Final) Draft (6 June 2012)

The ALAC and At-Large have multiple opinions on whether the removal
of Cross-Ownership Restrictions for gTLD Operators will be to the
benefit or detriment of users, or in fact, the domain ecosystem.
There is, however, a unified position that whatever the environment
is, with certain constraints, there should be a level playing field
for all gTLD operators.

As such, the ALAC supports the removal of cross-ownership constraints
for existing gTLD operators.

However, the ALAC does have one major concern with the proposal. The
option for existing gTLD operators to transition to the new gTLD
agreement would remove cross-ownership constraints, but it would also
have a very significant other effect that has not been the subject of
virtually any public discussion. Specifically, it would remove the
price caps in the existing agreements, and that is not something that
should quietly be slipped in without careful analysis.

That transition would be subject to limits related to competition
issues raised by the removal of the cross-ownership restrictions. The
document is silent on other results of such a transition, and
particularly the removal of price caps on existing operators.

The ALAC does not believe that there is sufficient proof at this time
to indicate that the new gTLD environment will so significantly
change the gTLD market so that price caps are no longer required for
the dominant gTLDs. As such, no change driven by the removal of
cross-ownership restrictions should at the same time remove the price
caps in the current agreements for dominant gTLDs without substantive
community involvement.

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