Contracted Party Agreements

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

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

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.

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.

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