ICANN is a not-for-profit body, headquartered in LA, that co-ordinates the Domain Name System (DNS) to ensure unique web addresses exist. It outsources the actual buying-and-selling of those domains to third parties, and has oversight by the departments of Commerce and Justice. Now, however, it’s looking in to tweaking some of its rules to, potentially, benefit one of its partner companies above others.
Verisign has the exclusive right to sell .com domains, and since 2012 the price of a .com has been frozen at $7.85. ICANN and Verisign are planning to reverse the freeze, allowing the company to increase its price four out of every six years, potentially in perpetuity. The other part of the deal will offer Verisign the right to operate its own registrar for other domains it offers, allowing it to compete with other DNS businesses.
Price-wise, Verisign will be able to increase the wholesale price of a .com name by up to seven percent for four of the next six years. That means that, potentially, the cost of one such domain would rise to $10.26 by the end of 2026, although existing owners will have advance notice of any change to lock in existing prices for up to 10 years at a time.
Earlier this month, the Internet Commerce Association, a body representing companies like GoDaddy, publicly objected to the deal. It says that, because Verisign is the only company that can offer .com names, it has “an effective monopoly.” And that because it costs less than $3 to actually process a DNS registration, the company could have room to operate uncompetitively.
The not-for-profit is currently consulting for members of the public to offer their opinion on the deal, on its website. The deadline for registering an objection to the amendment is February 14th, 2020, three days after publication of this report. Judging by the comments already received, the deal has not gone down well with those folks who’ve already been paying attention.
Fundamentally, it’s likely that the deal will pass, and that the end result is that your .com purchases are going to get a little more expensive. Much like everything else these days.
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