US probing Verisign price hikes, .com contract may be extended

The US Departments of Commerce and Justice are investigating the price increase provisions of Verisign’s .com registry agreement.

Verisign CEO Jim Bidzos disclosed the “review” on a conference call with financial analysts tonight.

It is likely that it will last beyond November 30 2012, the date the current .com agreement expires, he said.

“There’s a possibility it will not be complete by November 30,” he said.

A special six-month extension is likely to be triggered, he said.

“The status of our ability to operate .com is not an issue here,” he said.

He declined to comment on questions related to the likelihood that the company would be forced to change its pricing plans.

Verisign has spent $3.9 million in legal and other fees related to the US review, it emerged during the call.

ICANN approved the contract, which gives Verisign the right to increase its .com registry fees by 7% in four of the next six years, in June.

ICANN will see an extra $8 million in revenue from Verisign as a result.

Due to the special nature of .com, Justice and Commerce approval is required before the contract can be renewed. Verisign had previously expected that to come before November 30.

Verisign shares are trading down 14% in after-hours trading following the news.

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Tagged: .com, department of commerce, ICANN, ntia, verisign