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ICANN redacts the secrets of Verisign’s .web deal

Kevin Murphy, May 21, 2019, 09:58:05 (UTC), Domain Registries

Afilias thinks it has found the smoking gun in its fight to wrestle .web out of the hands of rival Verisign, but for now the details are still a closely guarded secret.
The company recently filed an amended complaint in its Independent Review Process case against ICANN, after it managed to get a hold of the deal that Verisign struck with Nu Dot Co, the company that spent $135 million of Verisign’s money to win .web at auction in 2016.
The Domain Acquisition Agreement, which apparently set out the terms under which NDC would bid for .web on Verisign’s behalf, was revealed during disclosure in December.
But in publishing the amended complaint (pdf) (which seems to have happened in the last week or two), ICANN has whited out all references to the contents of this document.
Afilias claims that the DAA proves that NDC broke the rules of the new gTLD program by refusing to disclose to ICANN that it had essentially become a Verisign proxy:
It claims that ICANN should therefore have disqualified NDC from the .web auction.

Based on the terms of the DAA, it is evident that NDC violated the New gTLD Program Rules. ICANN, however, has refused to disqualify NDC from the .WEB contention set, or to disqualify NDC’s bids in the .WEB Auction.

Afilias came second in the 2016 auction, bidding $135 million. NDC/Verisign won with a $142 million bid, committing it to pay the amount Afilias was willing to pay.
While Verisign has said that it plans to market .web, Afilias believes that Verisign’s primary motivation at the auction was to essentially kill off what could have been .com’s biggest competitor. It says in its amended complaint:

ICANN has eviscerated one of the central pillars of the New gTLD Program and one of ICANN’s founding principles: to introduce and promote competition in the Internet namespace in order to break VeriSign’s monopoly

Whether the DAA reveals anything we do not already know is an open question, but Afilias reckons ICANN’s prior failure to disclose its contents represents a failure of its commitment to transparency.
Reading between the lines, it seems Afilias is claiming that ICANN got hold of the DAA some time before it was given to Afilias in discovery last December, but that ICANN “had refused to provide the DAA (or even confirm its existence)”.
By redacting its contents now, ICANN is helplessly playing into the narrative that it’s trying to cover something up.
But ICANN is probably not to blame for the redactions. It was ICANN holding the axe, yes, but it was Verisign that demanded the cuts.
ICANN said in its basis for redactions document (pdf) that it “has an affirmative obligation to redact the information designated as confidential by the third party(ies) unless and until said third party authorizes the public disclosure of such information.”
Afilias has also managed to put George Sadowsky, who for the best part of the last decade until his October departure was one of ICANN’s most independent-minded directors, on the payroll.
In his testimony (pdf), he apparently reveals some details of the ICANN boards private discussions about the .web case.
Guess what? That’s all redacted too, unilaterally this time, by ICANN.

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Comments (3)

  1. Snoopy says:
    May 21, 2019 at 10:23 am

    The extension is never going to compete, dated sounding and 20 years too late. It is a poor mans .net.

    Reply
  2. Mark Thorpe says:
    May 21, 2019 at 1:44 pm

    .Web soap opera continues….

    Reply
  3. Christopher Ambler says:
    November 20, 2019 at 3:46 am

    I’m sorry, am I late to this story? 😉

    Reply

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