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New gTLDs not an illegal conspiracy, court rules

Kevin Murphy, August 5, 2015, 11:25:56 (UTC), Domain Policy

ICANN has beaten off a lawsuit from alternate root provider name.space for a second time, with a US appeals court ruling that the new gTLD program was not an illegal conspiracy.

name.space sued ICANN in 2012, claiming that the program broke competition laws and that “conflicted” ICANN directors conspired with the industry in an “attack” on its business model.

The company runs an alternate DNS root containing hundreds of TLDs that hardly anyone knows about, cares about, or has access to.

Almost 200 of the strings in its system had matching applications in the 2012 new gTLD round; many have since been delegated.

The company’s complaint asked for an injunction against all 189 matching TLDs.

But a court ruled against it in 2013, saying that name.space had failed to make a case for breaches of antitrust law.

Last week, an appeals court upheld that ruling, saying that the company had basically failed to cross the legal threshold from simply making wild allegations to showing evidence of an illegal conspiracy.

“We cannot… infer an anticompetitive agreement when factual allegations ‘just as easily suggest rational, legal business behavior.’,” the court ruled, citing precedent.

“Here, ICANN’s decision-making was fully consistent with its agreement with the DOC [US Department of Commerce] to operate the DNS and the Root,” it wrote. “In transferring control to ICANN, the DOC specifically required it to coordinate the introduction of new TLDs onto the Root. This is exactly what ICANN did in the 2012 Application Round”.

“The 2012 rules and procedures were facially neutral, and there are no allegations that the selection process was rigged,” the panel ruled.

The court further ruled that ICANN is not a competitor in the markets for domain names as registry, registrar or defensive registration services, therefore it could not be subject to antitrust claims for those markets.

A few other claims against ICANN were also dismissed.

In short, it’s a pretty decisive victory for ICANN. General counsel John Jeffrey said in a statement that ICANN is “pleased” to have won.

All the major documents in the case, including the latest opinion, can be downloaded here.

While the lawsuit has been making its way through the courts, the .space gTLD has actually been delegated and the domain name.space is owned by its new registry, Radix.

There’s some salt in the wounds.

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Comments (3)

  1. Rubens Kuhl says:

    The appeal court hearing for the case is also very interesting; video recording available at http://www.ca9.uscourts.gov/media/view_video.php?pk_vid=0000007312 .

  2. Such victory is usually associated with organizations like OPEC, IMF, and so on…

    I hope it doesn’t go to further paint, no!, actualize ICANN as not just a cartel, but one of those that are untouchable in the courts.

    I continue to pray that none of my friends, but only my enemies, live in a world of independent ICANN, that is one free from US oversight. Such a beast will not be limited to IANA functions; but may in fact start issuing traffic tickets…

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