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As ICANN meets to decide .org’s fate, California AG says billion-dollar deal must be rejected

Kevin Murphy, April 16, 2020, Domain Policy

California Attorney General Xavier Becerra has urged ICANN to deny approval of Ethos Capital’s $1.13 billion acquisition of .org manager Public Interest Registry.

The call came in a letter (pdf) dated yesterday, just a day before ICANN’s board of directors was scheduled to meet to discuss the deal.

Becerra, who started looking into the deal in late January, wrote, right out of the gate:

I urge ICANN to reject the transfer of control over the .ORG registry to Ethos Capital. The proposed transfer raises serious concerns that cannot be overlooked.

Chief among his concerns is the fact that ICANN originally granted PIR the right to run .org largely because it was a non-profit with a committment to serve non-profits. He wrote:

If, as proposed, Ethos Capital is permitted to purchase PIR, it will no longer have the unique characteristics that ICANN valued at the time that it selected PIR as the nonprofit to be responsible for the .ORG registry. In effect, what is at stake is the transfer of the world’s second largest registry to a for-profit private equity firm that, by design, exists to profit from millions of nonprofit and non-commercial organizations

He’s also bothered about the lack of transparency about who Ethos is and what its plans are. The proposed new owners of PIR are hidden behind a complex hierarchy of dummy LLCs, and Ethos has so far refused to name its money men or to specify what additional services it might offer to boost its revenue.

Becerra also doesn’t buy the business plan, which would see PIR required to pay off a $300 million loan and, as a newly converted for-profit entity, start paying taxes.

He’s particularly scathing about the fact that ICANN approved the removal of PIR’s price caps last year despite receiving over 3,000 public comments opposing the changes and only half a dozen in favor.

“There is mounting concern that ICANN is no longer responsive to the needs of its stakeholders,” he writes.

Despite saying he “will take whatever action necessary to protect Californians and the nonprofit community”, Becerra does not specify what remedies are available to him.

But it looks like ICANN faces the risk of legal action no matter which way its board of directors votes (or voted) today.

Its current deadline to make a decision is April 20.

Ethos clarifies .org price rises, promises to reveal number of censored domains

Public Interest Registry and would-be owner Ethos Capital have slightly revised the set of promises they hope to keep if ICANN approves the $1.13 billion acquisition.

Notably, in updating their proposed Public Interest Commitments (pdf), they’ve set out in plain dollar terms for the first time the maximum annual price PIR would charge for a .org domain over the coming seven years.

Applicable Maximum FeeTime Period
$9.93June 30, 2019 to June 29, 2020
$10.92June 30, 2020 to June 29, 2021
$12.02June 30, 2021 to June 29, 2022
$13.22June 30, 2022 to June 29, 2023
$14.54June 30, 2023 to June 29, 2024
$15.99June 30, 2024 to June 29, 2025
$17.59June 30, 2025 to June 29, 2026
$19.35June 30, 2026 to June 29, 2027

Previous versions of the PICs just included a formula and invited the reader to do the math(s).

The two companies are proposing to scrap price caps altogether after June 2027.

If ICANN rejects the deal, under its current contract PIR would be free to raise its prices willy-nilly from day one, though some believe it would be less likely to do so under its current ownership by the non-profit Internet Society.

The new PICs also include a nod to those who believe that PIR would become less sensitive to issues like free speech and censorship — perhaps because China may lean on Ethos’ shadowy billionaire backers. The document now states:

Registry Operator will produce and publish annually a report… This report will also include a transparency report setting forth the number of .ORG domain name registrations that have been suspended or terminated by Registry Operator during the preceding year under Registry Operator’s Anti-Abuse Policy or pursuant to court order.

A few other tweaks clarify the launch date and composition of its proposed Stewardship Council, a body made up of expert outsiders that would offer policy guidance and have a veto on issues such as changes to .org censorship and privacy policy.

The PICs now ban family members of people working for PIR from sitting on the council, and clarify that it would have to be up and running six months after the acquisition closes.

Because .org is not a gTLD applied for in 2012, the PICs do not appear to be open for public comment, but post-acquisition changes to the document would be.

ICANN currently plans to approve or deny the acquisition request by April 20, just 11 days from now.

ICANN grants Verisign its price increases, of course

Kevin Murphy, March 30, 2020, Domain Registries

ICANN has given Verisign its ability to increase .com prices by up to 7% a year, despite thousands of complaints from domain owners.

The amendments give Verisign the right to raise prices in each of the last four years of its six-year duration. The current price is $7.85 a year.

Because the contract came into effect in late 2018, the first of those four years begins October 26 this year, but Verisign last week said that it has frozen the prices of all of its TLDs until 2021, due to coronavirus.

Not accounting for discounts, .com is already already worth $1.14 billion in revenue to Verisign every year, based on its end-of-2019 domains under management.

In 2019, Verisign had revenue of $1.23 billion, of which about half was pure, bottom-line, net-income profit.

In defending this shameless money-grab, ICANN played up the purported security benefits of the deal, while offering a critique of the domainers and registrars that had lobbied against it.

Göran Marby, ICANN’s CEO, said in a blog post.

I believe this decision is in the best interest of the continued security, stability, and resiliency of the Internet.

Overall, the decision to execute the .COM Registry Agreement amendment and the proposed binding Letter of Intent is of benefit to the Internet community.

The decision was explained in more detail in a eight-page analysis document (pdf) published late last week.

I’ll summarize this paper in three bullet points (my words, not ICANN’s):

  • Domainers are hypocrites.
  • The deal is good for DNS security.
  • Our hands were tied anyway.

First, while ICANN received over 9,000 comments about the proposed amendment, almost all negative, it said that publicity campaigns from domainer group the Internet Commerce Association and domainer registrar Namecheap were behind many of them.

the Internet Commerce Association (ICA) and Namecheap, are active players in the so called “aftermarket” for domain names, where domain name speculators attempt to profit by “buying low and selling high” on domain names, forcing end users to pay higher than retail prices for desirable domain names

It goes on to cite data from NameBio, which compiles lists of secondary market domain sales, to show that the average price of a resold domain is somewhere like $1,600 (median) to $2,400 (mean).

Both Namecheap and ICA supporter GoDaddy, which sells more .coms than any other registrar, have announced steep increases in their .com retail renewal fees in recent years — 20% in the case of GoDaddy — the ICANN document notes.

This apparent hypocrisy appears to be reason ICANN felt quite comfortable in disregarding many of the negative public comments it received.

Second, ICANN reckons other changes to the .com contract will benefit internet security.

Under a side deal (pdf) Verisign’s going to start giving ICANN $4 million a year, starting next January and running for five years, for what Marby calls “ICANN’s initiatives to preserve and enhance the security, stability, and resiliency of the DNS.” These include:

activities related to root server system governance, mitigation of DNS security threats, promotion and/or facilitation of Domain Name System Security Extensions (DNSSEC) deployment, the mitigation of name collisions, and research into the operation of the DNS.

Note that these are without exception all areas in which ICANN already performs functions, usually paid for out of its regular operating budget.

Because it looks like to all intents and purposes like a quid pro quo, to grease the wheels of getting the contract amendments approved, Marby promised that ICANN will commit to “full transparency” as to how its new windfall will be used.

The new contract also has various new provisions that standardize technical standardization and reporting in various ways, that arguably could provide some minor streamlining benefits to internet security and stability.

But ICANN is playing up new language that requires Verisign to require its registrars to forbid their .com registrants from doing stuff like distributing malware and operating botnets. Verisign’s registrar partners will now have to include in their customer agreements:

a provision prohibiting the Registered Name Holder from distributing malware, abusively operating botnets, phishing, pharming, piracy, trademark or copyright infringement, fraudulent or deceptive practices, counterfeiting or otherwise engaging in activity contrary to applicable law and providing (consistent with applicable law and any related procedures) consequences for such activities, including suspension of the registration of the Registered Name;

Don’t expect this to do much to fight abuse.

It’s already a provision that applies to hundreds of other TLDs, including almost all gTLDs, and registrars typically incorporate it into their registration agreements by way of a link to the anti-abuse policy on the relevant registry’s web site.

Neither Verisign nor its registrars have any obligation to actually do anything about abusive domains under the amendments. As long as Verisign does a scan once a month and keeps a record of the total amount of abuse in .com — and this is data ICANN already has — it’s perfectly within the terms of its new contract.

Third and finally, ICANN reckons its hands were pretty much tied when it comes to the price increases. ICANN wrote:

ICANN org is not a competition authority or price regulator and ICANN has neither the remit nor expertise to serve as one. Rather, as enshrined in ICANN’s Bylaws, which were
developed through a bottom up, multistakeholder process, ICANN’s mission is to ensure the security and stability of the Internet’s unique identifier systems. Accordingly, ICANN must defer to relevant competition authorities and/or regulators, and let them determine if any conduct or behavior raises anticompetition concerns and, if so, to address such concerns, whether it be through price regulation or otherwise. As such, ICANN org has long-deferred to the DOC and the United States Department of Justice (DOJ) for the regulation of wholesale pricing for .COM registry services.

It was of course the DoC, under the Obama administration, that froze Verisign’s ability to raise prices and, under the Trump administration, thawed that ability in November 2018.

If you’re pissed off that the carrying cost of your portfolio is about to go up, you can blame Trump, in other words.

US senators tell ICANN to reject .org deal

Kevin Murphy, March 20, 2020, Domain Registries

Five US senators have called on ICANN to not approve the acquisition of Public Interest Registry by Ethos Capital.

The senators — all Democrats — said in a March 18 letter published today that the proposed $1.13 billion deal is “against the public interest”.

The surprisingly detailed nine-page letter (pdf) was signed by Ron Wyden, Richard Blumenthal, Elizabeth Warren and Anna Eshoo, following up from a similar letter sent in January. The new letter also has Ed Markey as a signatory. They write:

We were concerned that the sale would be contrary to ICANN’s commitment to the public benefit, that it might undermine the reliability of .ORG websites, and that Ethos is unlikely to be a responsible steward of the .ORG registry. New information we have obtained in the last two months, including statements made by ISOC, PIR, and Ethos, has validated these concerns. Accordingly, we write to reiterate our view that ICANN should block the proposed change of control of the .ORG registry.

Chief among their concerns is the lack of transparency about who is actually bankrolling the deal. Ethos has confirmed it will be partially funded by loans, but the identities of its actual owners have not been confirmed.

It’s been said that two of the backers are investment firms linked to high-profile Republicans — Senator Mitt Romney and the late Ross Perot.

The senators are also worried that the business plan Ethos has publicly laid out may not be realistic, suggesting that PIR will be forced to rip off customers in order to recoup the cost of the acquisition.

They go on to say that Ethos’ promise to only increase prices by 10% per year, enforceable via a Public Interest Commitment in its ICANN contract, is “weak”, particularly given that the commitment would automatically expire seven years from now.

They’re also not buying the notion that PIR’s proposed Stewardship Council, made up of outside .org stakeholders, would have enough power to guide registry policy, calling the council “toothless”.

ICANN is of course under no obligation to take its lead from a handful of legislators, but it’s yet another voice stacked against a deal that already had very little support.

ICANN has until April 20 to make a decision about the change of control.

Could .org debate bring back the glory days of ICANN public forums?

Kevin Murphy, March 5, 2020, Domain Policy

ICANN is going to devote 90 minutes to discussing the controversial acquisition of Public Interest Registry by Ethos Capital on Monday, and the sparks could fly.

It’s actually going to be the first formal session of the abridged, online-only ICANN 67 meeting, which had been due to take place in Cancun but will now be carried out fully online. The customary opening ceremony has been scrapped.

Seventy minutes will be devoted to taking questions and comments from the “room”. ICANN 67 is sticking to Cancun’s time zone and the .org session starts at 1400 UTC, which would have been 0900 at the venue.

ICANN warned that the sessions is devoted to the process ICANN is using to approve, or not, the acquisition, and that it “cannot address questions and comments that relate to the ISOC, PIR, Ethos Capital, or other parties involved in the proposed transfer”.

The deal is controversial largely because critics believe Ethos, as a private equity company, is much more likely to start to rip off .org registrars with price hikes than not-for-profit ISOC. But Ethos has offered to bake conditions into its contract that limit it to 10% increases per year on average.

Given the vast amount of interest in the .org deal from outside the usual ICANN community, we could see the kind of robust debate that was common in the ICANN public forum sessions during the birth throes of the new gTLD program, but which has been sadly lacking in recent years.

Newcomers wishing to get involved might like to first familiarize themselves with ICANN’s Expected Standards of Behavior. Anyone dropping the F-bomb or calling the deal “gay”, as happened during the recent .com comment period, will very likely be kicked and banned. Just imagine you’re talking to Titania McGrath and you should be okay.

Ethos volunteers for .org pricing handcuffs

Kevin Murphy, February 25, 2020, Domain Registries

Ethos Capital has volunteered to have price caps written back into Public Interest Registry’s .org contract, should ICANN approve its $1.1 billion proposed acquisition.

The private equity firm said Friday that it has offered to agree to a new, enforceable Public Interest Commitment that bakes its right to increase prices into the contract under a strict formula that goes like this:

Applicable Maximum Fee = $9.93 x (1.10n)

The $9.93 is the current wholesale price of a annual .org registration. The “n” refers to the number of full years the current .org registry agreement has been in play, starting June 30, 2019.

In other words, it’s a 10%-per-year increase on average, but PIR could skip a year here and there and be eligible for a bigger price increase the following year.

For example, PIR could up the fee by 10% or $0.99 to $10.92 this coming June if it wanted, but if it decided to wait a year (perhaps for public relations reasons) if could increase the price to $12.13 in June 2021, an increase of $2.20 or roughly 22%.

It could wait five years before the first price increase, and up it from $9.93 to $16.53, a 66% increase, in year six.

While price increases are of course unpopular and will remain so, the formula does answer the criticism posed on DI and elsewhere that Ethos’ previous public statements on pricing would allow PIR to front-load its fee hikes, potentially almost doubling the price in year one.

But the caps have a built-in expiry date. They only run for eight years. So by the middle of 2027, when PIR could already be charging $18.73, the registry would be free to raise prices by however much it pleases.

It’s a better deal for registrants than what they’d been facing before, which was a vague commitment to stick to PIR’s old habit of not raising prices by more than 10% a year, but it’s not perfect and it won’t sate those who are opposed to increased fees in principle.

On the upside, a PIC is arguably an even more powerful way to keep PIR in line after the acquisition. Whereas other parts of the contract are only enforceable by ICANN, a Public Interest Commitment could theoretically be enforced via the PIC Dispute Resolution Procedure by any .org registrant with the resources to lawyer up. Losing a PICDRP triggers ICANN Compliance into action, which could mean PIR losing its contract.

The PIC also addresses the concern, which always struck me as a bit of a red herring, that .org could become a more censorial regime under for-profit ownership.

Ethos says it will create a new seven-person .ORG Stewardship Council, made up of field experts in human rights, non-profits and such, which will have the right to advise PIR on proposed changes to PIR policy related to censorship and the use of private user/registrant data.

The Council would be made up initially of five members hand-picked by PIR. Another two, and all subsequent appointments, would be jointly nominated and approved by PIR and the Council. They’d serve terms of three years.

The proposed PIC, the proposed Council charter and Ethos’ announcement can all be found here.

Correlation does not necessarily equal causation, but it’s worth noting that the proposal comes after ICANN had started playing hard-ball with PIR, Ethos and the Internet Society (PIR’s current owner).

In fact, I was just putting the finishing touches to an opinion piece entitled “I’m beginning to think ICANN might block the .org deal” when the Ethos statement dropped.

In that now-spiked piece, I referred to two letters ICANN recently sent to PIR/ISOC and their lawyers, which bluntly asserted ICANN’s right to reject the acquisition for basically any reason, and speculated that the deal may not be a fait accompli after all.

In the first (pdf), Jones Day lawyer Jeffrey LeVee tells his counterpart at PIR’s law firm in no uncertain terms that ICANN is free to reject the change of control on grounds such as the “public interest” and the interests of the “.org community”.

Proskauer lawyer Lauren Boglivi had told ICANN (pdf) that its powers under the .org contract were limited to approve or reject the acquisition based only on technical concerns such as security, stability and reliability. LeVee wrote:

This is wrong. The parties’ contracts authorize ICANN to evaluate the reasonableness of the proposed change of control under the totality of circumstances, including the impact on the public interest and the interest of the .ORG community.

Now, the cynic in me saw nothing but a couple of posturing lawyers trying to rack up billable hours, but part of me wondered why ICANN would go to the trouble of defending its powers to reject the deal if it did not think there was a possibility of actually doing so.

The second letter (pdf) was sent by ICANN’s new chair, Maarten Bottermann, to his ISOC counterpart Gonzalo Camarillo.

The letter demonstrates that the ICANN board of directors is actually taking ownership of this issue, rather than delegating it to ICANN’s executive and legal teams, in large part due to the pressure exerted on it by the ICANN community and governments. Botterman wrote:

It is not often that such a contractual issue raises up to a Board-level concern, but as you might appreciate, PIR’s request is one of the most unique that ICANN has received.

He noted that the controversy over the deal had even made ICANN the target of a “governmental inquiry”, which is either a reference to the California attorney general’s probe or to a letter (pdf) received from the French foreign office, demanding answers about the transaction.

It’s notable from Botterman’s letter that ICANN has started digging into the deep history of PIR’s ownership of .org, much as I did last December, to determine whether the commitments it made to the non-profit community back in 2002 still hold up under a return to for-profit ownership.

Given these turns of events, I was entertaining the possibility that ICANN was readying itself to reject the deal.

But, given Ethos’ newly proposed binding commitments, I think the pendulum has swung back in favor of the acquisition eventually getting the nod.

I reserve the right to change my mind yet again as matters unfold.

Verisign shits on domainers, again

Kevin Murphy, February 17, 2020, Domain Registries

It’s probably no exaggeration to say that Verisign makes hundreds of millions of dollars a year from .com domain investors, and yet it’s been developing a habit in recent years of shitting on them whenever it serves its purpose.

The company’s submission to ICANN’s just-closed public comment period on the proposed new .com contract, which re-enables Verisign’s ability to increase its prices, is the latest such example.

In the letter, which is unsigned, Verisign accuses the Internet Commerce Association, as well as registrars Namecheap and Dynadot, of conducting a “deceptive” campaign to persuade .com registrants to submit comments opposing the deal.

It notes that ICA represents “speculators” — it never uses the term “investors” — as if this was some kind of closely guarded secret, and describes the practice of domaining in a way that implies that the practice is somehow “illegitimate”, like this:

More than any other group engaged in the ICANN multistakeholder process, these speculators are highly sensitive to even the smallest wholesale price changes because of the enormous portfolios of .com domain names they control.

Speculators sometimes sell these domain name registrations to other speculators, but often they pass these costs along when they sell the domain names to legitimate internet users who wish to use .com domain names to build websites. We believe this resale activity adds little value to the DNS.

It’s not wrong, but good grief! The chutzpah on this company is sometimes jaw-dropping.

It’s like a car manufacturer complaining that its billion-dollar range of off-road SUVs are mostly being used by obese city dwellers for the school run. Just take the billion dollars and stop complaining about your biggest customers!

It’s not the first time Verisign has rolled out this line of attack. Back in 2018, when price caps were being negotiated with the US government, it posted an article on CircleID accusing domainers of “exploit[ing] consumers” and “scalping”.

Verisign’s able to get away with this kind of attitude, of course, because most domainers have an almost erotically slavish devotion to .com. The company could spend all day every day emailing them disgustingly personalized “yo momma” jokes and they wouldn’t stop buying up its product by the millions.

The two sides are trapped in an emotionally abusive relationship but they can’t break up because they’re both making so much goddamn money out of it. They’re like the Clintons of the domain world, in other words.

Anyway, the gist of the company’s comment to ICANN is basically “Ignore the 9,000 other comments you’ve received, the commenters were suckered into writing them by lying registrars”.

Read it here (pdf).

As a matter of disclosure, Verisign cites the DI piece last week about covid-19.com as an example of why domainers suck. That wasn’t the intent of the article, but there you go.

9,000 people tell ICANN they don’t want .com price increases. Here’s what some of them said

Kevin Murphy, February 17, 2020, Domain Registries

The public have spoken: they don’t want Verisign to get the right to raise .com prices again.

ICANN’s public comment period on the amended .com contract closed on Friday, with just shy of 9,000 comments which appear to be overwhelmingly against price-raising powers.

Comments

Almost 2,000 of the comments have the same subject line, “Proposed Amendment 3 to the .COM Registry Agreement”, suggesting they were generated by the Internet Commerce Association’s semi-automated outrage tool.

It’s a lot, but it’s dwarfed by seemingly non-ICA submissions, which will make the opposition to the deal harder to ignore than with last year’s .org deal, where many of the 3,000 comments were written off as “akin to spam”.

.com’s wholesale fee has been frozen at $7.85 per year since 2012, but Verisign managed to persuade the Trump administration in 2018 to allow it to return to the old policy of being able to raise prices by 7% in four out of the contract’s six years.

After a year’s negotiation, ICANN agreed to incorporate that change into its Registry Agreement with Verisign. Some commentators, including the Registrars Stakeholder Group, are now saying that ICANN should put contracts out to comment BEFORE they are negotiated.

The RrSG said of price increases:

The RrSG is concerned that the proposed price increases are without sufficient justification or an analysis of its potentially substantial impact on the DNS. ICANN has not explained how increase domain name prices are in the public interest or how this furthers the security and stability of the DNS. The price increases appear only to benefit one company, which has the right to operate .com in perpetuity (and without a competitive bidding process). This is inconsistent with ICANN’s bottom-up multi-stakeholder model.

It’s also understandably pissed off that Verisign is to get the right to own its own registrar for the first time, which could shake up the retail domain market.

While the proposed contract does not allow the hypothetical Verisign registrar to sell .com domains, the registrars think they’ve spotted a loophole:

nothing in the amendment prevents Verisign from reselling .COM domains via another registrar. In theory, Verisign could resell .COM domain names at or below cost and still profit from the wholesale .COM price

Some registrars submitted separate comments that echoed the RrSG collective view.

GoDaddy commented that there should be an economic study on the potential impact of higher pricing on competition before any increases are allowed to go into effect, adding:

GoDaddy believes that ICANN has agreed to a framework for wholesale price increases in .COM that will negatively impact current and future registrants of .COM domain names, as well as the overall domain name industry, which is disproportionately dependent and impacted by changes in .COM pricing. We are further concerned that there is no effective competition to assist in establishing what is a reasonable price for .COM.

Namecheap, which has also been vocal in fighting .org price increases, noted that .com prices could go up by as much as 70% over the next decade, due to the compound impact of annual 7% rises, adding:

The .com registry is well-established, so due to gained efficiencies, the cost of .com domain names should remain static or go down. It is not clear how much registrars will pass these price increases along to consumers, but it is likely that most of this increase will be paid for by domain name registrants.

Drop-catch specialist TurnCommerce/NameBright called for .com to be put out for competitive bidding:

There is simply no legitimate argument that competition for registry contracts—especially the largest registry contract—is bad for the domain name system or for consumers. Without the prospect of competitive pressure, Verisign has no incentive to be efficient, innovative, and effective. In the time that Verisign has operated the registry, prices have increased, we believe innovation has stalled, while Verisign’s operating costs have apparently declined.

As far as I can tell, the Registries Stakeholder Group, of which Verisign is a member, did not submit a comment. But some other constituencies did.

The Business Constituency generally supports ICANN’s somewhat hands-off approach to price regulation, but it did complain that there should have been a public consultation before the bilateral contract talks began a year ago. It wrote:

The BC has no practical objection to price increases that average just 4.5% per year for businesses who register .COM domains. Some BC members are concerned that Verisign has not provided justification for increasing .COM prices, though we are not aware of any requirement for gTLD operators to provide such justification. And while some BC members would prefer that ICANN seek competitive bids to operate existing registries, the BC has generally supported presumptive renewal performance incentives in registry agreements.

If you’re picking up hints of internal BC dissent in that comment, it’s almost certainly because BC member Zak Muscovitch is also general counsel of the ICA and was one of several contributors to its drafting.

The only other formal GNSO stakeholder group to submit a comment appears to be the Intellectual Property Constituency, but it took no position on pricing.

The At-Large Advisory Committee, which according to its web site “acts on the interests of Internet users”, sent a borderline humorous “Valentine” to the ICANN board that does not mention pricing but does congratulate ICANN on securing a $20 million Verisign bung, which is earmarked for DNS security work.

Here’s a sample of 10 public comments I clicked on randomly:

I’m writing to express disappointment and concern regarding the recent ICANN changes made to their contract with Verisign. These changes potentially create a lot of harm and unnecessary expense to customers for years to come. Please take customers into consideration before going forward with this.

Please don’t increase .com prices. As a small business owner we feel every price increase in our family business. We want to be able to keep the domain name that we have spent years building as our small business home on the web.

I’m here to tell you to stop this proposed price increase. You are being greedy. 40% price hikes with no caps in sight are ridiculous, stop it. I’m tired of getting ripped off by big secretive corporations and sleazy government agencies, and now this includes YOU!. We aren’t going to just put up with it, I, and a lot of others are here to fight! We demand to know
what you are doing with the money you propose to reap from us, aside from lining your pockets! Proveme wrong, give the internet community the clarity it deserves, and now demands!

This is a disgrace and not right.

I disagree with the changes that this amendment (3) will make to the domain registry system. I believe that this increase of fees will stifle innovation and takes the web further towards privatization and big money.

I know that I would not have taken as many opportunities or risks if prices were significantly higher and domains were a larger cost of business.

I urge you to reconsider these changes and reject this amendment.

I am writing in opposition to the proposed Verisign deal with respect to .com domains. I believe the current arrangement should be kept and strict price controls from ICANN should be preserved for .com domains. Verisign has no business exerting control or influence over ICANN, and the deal as proposed will be bad for consumers and anyone who holds a .com domain.

Please do not proceed with the proposed changes.

Please stop trying to fuck up the internet. It has been excessively adapted to suit capitalism. I think many more than just me have had enough. Stop being a shady ass business.

I do not agree with the extraordinary increase in prices for .com domains that appears to be a direct response to a bribe paid by Verisign company to the board of ICANN.

We live in perilous times, where democracy is threatened in every side by the resurgence of corruption, cronyism, and the far right.

You appear to be allowing the backbone of the internet become corrupted by greed, which would horrify the founding fathers of this essential technology.

Show some integrity and don’t give in to the basest of your natures.

I am a registrant of more .com domain names. I am against the proposed price increase to .COM domains. Verisign is merely your manager of the .COM Registry – it has no business dictating the price. ICANN is supposed to govern the domain name system in the public interest.

Thanks first for your hard work.

Please keep prices as they are and avoid this change that could have dire consequences for the entire internet as other less democratic countries will start soon offering alternative domains to .com. Furthermore, any increase will cause difficulties for us who are part of the third world.

If you’ve got more time on your hands than I have, you can peruse all 9,000 comments at your leisure over here. If you find anything good, please do drop a link in the comments.

Some poor bastard at ICANN now has the job of going through and summarizing all of them into ICANN’s official comment report, which has a March 6 deadline.

ICA will help you support .com price increases (but doesn’t want you to)

Kevin Murphy, February 10, 2020, Domain Registries

The Internet Commerce Association has released a new version of its semi-automated commenting tool, making it a bit easier for domainers and others to complain to ICANN about the proposed .com price increases.

Surprisingly, the tool will also help you file a comment in support of Verisign’s 7%-a-year price-raising powers, though obviously ICA would prefer you do not.

The tool is based on the one ICA launched last year when Public Interest Registry was due to get its .org price caps lifted by ICANN, but ICA general counsel Zak Muscovitch says that it’s been refined following feedback.

It allows users to identify what kind of registrant they are (domainer, end user, or just concerned netizen) and select from several options to create pre-written comments that reflect their own views. They can also enter their own free text before hitting submit.

One of the options is “I support the proposed price increase which allows for a 31% price increase through 2024”, but I can’t imagine anyone apart from Verisign staff and shareholders checking that particular box.

The .org version of the tool caused a bit of a stir last year after ICANN’s Ombudsman compared submissions made through it to “spam”. He caught some flak for that.

Muscovitch tells DI that it’s not just domainers using the service. Some registrars are directly contacting their customers to encourage them to submit comments, he said, so the views of “the public at large” are being reflected.

At the time of publication about 350 comments have been submitted, more than half of which appear to have originated via the ICA tool.

The public comment period closes February 14.

If you don’t fancy using the ICA tool, submitting a comment directly to ICANN doesn’t appear to be particularly difficult. You simply go here, click the “Submit Comment” button, and ICANN will open up your mail client’s compose window with the appropriate address pre-populated.

Perhaps predictably, I remain skeptical that this kind of thing will have any impact on ICANN’s decision to approve a contract it spent a year negotiating.

But it can’t hurt, right? After all, the reason Verisign only gets to raise prices in four out of six years is because so many people complained about the much more expansive proposed powers back in 2006, and ICANN is still reeling from the outrage over .org…

Ethos’ .org pricing promise may be misleading

Kevin Murphy, February 10, 2020, Domain Registries

The more Ethos Capital protests that its plans for .org pricing are not as bad as its critics think, the less I believe it.

Since November, the would-be buyer of Public Interest Registry has being publicly committing to maintain what it calls PIR’s “historic practices” related to pricing.

PIR, under its last ICANN contract, was allowed to raise prices by up to 10% per year, but it did not always exercise that right. In fact, the wholesale price of .org has been fixed at $9.93 since August 2016.

Ethos has described its price increase plans in a very specific, consistent way. In November it said:

Our plan is to live within the spirit of historic practice when it comes to pricing, which means, potentially, annual price increases of up to 10 percent on average — which today would equate to approximately $1 per year.

Last month, chief purpose officer Nora Abusitta-Ouri wrote:

We committed to limiting any potential increase in the price of a .ORG domain registration to no more than 10% per year on average

Last week, she wrote:

Ethos has committed to limiting any potential increase in the price of a .ORG domain registration to no more than 10% per year on average

Over the weekend, she added:

we are not saying that we will raise prices 10% every year — our commitment is that any price increase would not exceed 10% per year on average, if at all.

Clearly, the talking point has been copy-pasted a few times, and it always includes the words “10% per year on average”.

On average.

What does that mean? What are we averaging out here? It can’t be across the .org customer base, as registries aren’t allowed to vary pricing by registrant, so we must be talking about time. PIR has a 10-year contract with ICANN, so we must be talking about prices going up no more than 10% per year “on average” over the next decade.

If PIR, under Ethos’ stewardship, decides to raise prices by exactly 10% every year starting in 2020, the wholesale cost of a .org domain will be $25.76 by 2029, a 159% increase on today’s rate.

Assuming for the sake of this thought experiment that .org stays flat at 10 million registrations (it’s actually a little more today, but it’s declining), Ethos would be looking at a $258 million-a-year business by 2029, up from today’s $99 million.

Over the course of the 10-year contract, .org would be worth a cumulative $1.74 billion in reg revenue, up from the $993 million it would see without price increases.

But Ethos is only promising that price increases will be no more than 10% per year on average, remember, and it’s even hinted that there could be some years with no increases at all.

I noted in November that this commitment could see Ethos raise prices in excess of 10% early on, then freeze them so the increase averages back down to 10% over time.

It would of course make the most sense to front-load the price increases, to maximize the return.

At one extreme, Ethos could raise the price to $25.76 a year immediately, then lock the price down until 2029. That would make .org a $258 million-a-year business overnight, and making the cumulative 10-year revenue around the $2.58 billion mark.

Or, it could raise prices by 20% in alternate years, adding up to $1.77 billion in total top-line and a price to registrants of $24.71 by 2028.

There’s an infinity of variations on these strategies, and Ethos’ modeling is certainly more complex than the envelope upon which I just jotted these simplified figures down, but it’s pretty clear that while the company may well stick to the letter of its promises, it gets its best returns if it raises prices hard and early.

The more I read “on average” repeated in Ethos’ literature, the more convinced I become that this is exactly what it has in mind.