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Donuts’ DropZone approved despite competition fears

Kevin Murphy, October 6, 2021, 17:34:48 (UTC), Domain Registries

ICANN has approved Donuts’ proposed drop-catching service, DropZone, despite concerns it could add cost to the dropping domains market.

The Org and Donuts subsidiaries representing over 200 gTLDs signed amendments September 29 that incorporate DropZone into their Registry Agreements, according to ICANN records.

The full new text in the amendments, which does a pretty good job of describing the service, is:

Dropzone Service

Registry Operator may offer the Dropzone service, which is a Registry Service that will manage the release of domain names that have reached the end of their life cycle.

The Dropzone is a separate system, parallel to the main EPP system, that will manage on a daily basis the release of domain names that have been purged for a short period of time, called the Dropzone. Any TLD-accredited registrars may use the Dropzone to register a recently-purged domain name.

On a daily basis, at the end of the Dropzone period, the Registry will execute an awarding process, which will select, per domain name, the first domain creation request submitted (first come, first serve).

What the amendment doesn’t mention are fees. The original Donuts Registry Service Evaluation Request stated in August:

In addition to the standard or premium registration prices of a given domain name, The Dropzone service can support additional application fees to be configured on a per TLD basis. Applications fees where applicable will be charged in addition to the standard registration price of a domain name.

This caused concern at TurnCommerce, the company that runs the DropCatch.com network of registrars, which told ICANN last month that DropZone was anti-competitive and could raise the price of dropping domains.

But ICANN responded that DropZone passed its competition sniff test, and would not be referred to government authorities.

Donuts has not yet publicly announced plans to launch DropZone.

A virtually identical service, that did not mention added fees in its RSEP, was previous approved for Afilias, the registry operator Donuts acquired at the start of the year.

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Comments (1)

  1. Rob Green says:

    This scheme from Donuts sounds like it would create a highly non-competitive environment, particularly as Registrars will get privileged first-pick and consumers will pay the increased costs.
    Having recently rejected Ethos Capital’s plan to transform the .ORG domain registry into a heavily indebted for-profit entity, why would ICANN now permit this new leveraged Ethos vehicle?

Leave a Reply to Rob Green