GoDaddy stops selling .ru domains, commits money to support Ukraine

Domain registrar market-share leader GoDaddy will no longer sell .ru domain names, and has reached into its pocket to provide financial support for Ukraine relief efforts.

In a two-pronged response to the Russian invasion, the company outlined several measures aimed at both supporting Ukraine and putting some sanction-style pressure on Russia.

It’s not kicking out existing Russian registrants, but it is, according to a statement:

• Removing the Russian version of our website
• No longer supporting new registrations of .ru and .ru.com
• Removing all .ru domain names from our domain name aftermarket
• Removing the Russian Ruble

“What’s happened in Ukraine is horrible. We do not condone the unwarranted aggression from the Russian Government,” the statement says.

For Ukrainian customers, GoDaddy is renewing their products and services due to expire in the next 60 days for free.

“Customers can also contact us at any time, and if they need something specific, we’ll help them as best we can,” the company added.

It’s also donating $500,000 to humanitarian relief in Ukraine, donation-matching its employees’ gifts, and offering to help pay its Ukrainian contractors’ salaries for the next 60 days.

Other registrars to share their support for Ukraine so far include Namecheap, Tucows, IONOS and Gandi.

Gandi says it supports Ukraine but WON’T cut off Russians

Gandi has become the latest large registrar to issue a statement about the war in Ukraine, saying that while it deplores the violence it won’t be disconnecting Russian customers.

CEO Stephan Ramoin wrote that Gandi “condemns” the invasion and is “working on supporting Ukraine, according to the suggestions of our Ukrainian tech colleagues”, adding:

The internet is about including all humanity and working toward a greater goal, giving every human being a voice and a clear vision of the world, not excluding and antagonizing one group of people against another. That’s why we want to support the people of Russia and Belarus expressing their disagreement with this war. We don’t need to escalate, war is not the answer.

Cutting off Russians and Belarusians would only encourage the creation of different closed worlds and digital networks. We have chosen to hold out our hand to these people. We are not at war with them. Only their leaders, and their madness, need to be stopped. We will of course react quickly against war propaganda of any kind.

The statement follows those coming from Namecheap and IONOS, which have both this week announced their intentions to remove most Russian and Belarusian customers.

Based in Paris, Gandi is one of the oldest registrars and has over 1.3 million gTLD domains under management.

Now IONOS kicks out Russian customers

IONOS has become the second major registrar to say it will turf out its Russian customers in response to the invasion of Ukraine.

The company’s board of directors today issued a statement expressing support for the people of Ukraine and saying:

To support worldwide sanctions on Russia, we are not accepting any new customer contracts from Russia and are also terminating existing relationships with Russian customers. This also applies to business relationships with Russian service providers and suppliers. We are currently reviewing all existing supplier contracts.

The directors said that many of their colleagues come from Ukraine and have family in the region.

It’s not immediately clear whether the ban applies to domain name registrants as well as hosting customers, and what options Russian registrants have been given. An IONOS spokesperson said the details are still being worked out.

Earlier in the week, US-based registrar Namecheap, which has its customer support based in Ukraine, gave its Russian registrants notice to transfer their names elsewhere. It later said it would offer free domains to Russian dissidents.

While a little smaller than Namecheap, IONOS is part of Germany-based United-Internet and, with over five million names, a top-10 registrar in terms of gTLD domains under management.

Namecheap offers free services to Russian dissidents

Namecheap will offer “free anonymous domain registration and free web hosting” to anti-war protest web sites based in Russia or Belarus.

The registrar said in a statement today that the move is in response to imprisoned Russian opposition leader Alexei Navalny’s call for war protests in Russia.

The offer modifies the company’s hard-line position from earlier in the week, in which it banned Russians altogether from its services and gave registrants there a week to get out.

Namecheap’s English-language customer service is based in Ukraine, including in cities under heavy bombardment this week.

Russians interested in the free hosting offer are asked to contact customer service for details.

Namecheap boss goes nuclear on Russian customers

Namecheap has banned all Russians from its services in a comprehensive, surprising, and unprecedented expression of solidarity with Ukraine, the invaded country where most of its support staff are based.

CEO Richard Kirkendall said yesterday that Namecheap, which has over 14 million domains under management, “will no longer be providing services to users registered in Russia”, in an email to Russian customers.

Namecheap says it has over 1,000 employees in Ukraine.

It uses a company there called Zone3000 for its English-language customer support, from three locations across the country, mostly in Kharkiv, one of the cities that has been particularly affected by the Russian invasion over the last five days.

Kirkendall has given Russian customers until March 6, one week from the time of the email, to move to another registrar.

The email was posted online, and I’ve confirmed with Namecheap that it’s accurate. Kirkendall said:

Unfortunately, due to the Russian regime’s war crimes and human rights violations in Ukraine, we will no longer be providing services to users registered in Russia. While we sympathize that this war may not affect your own views or opinion on the matter, the fact is, your authoritarian government is committing human rights abuses and engaging in war crimes so this is a policy decision we have made and will stand by.

If you hold any top-level domains with us, we ask that you transfer them to another provider by March 6, 2022.

I’m told the words “any top-level domains” just means ‘any domains in any TLDs’.

Kirkendall went on to say that anyone using Russian and Belarusian ccTLDs — .ru, .xn--p1ai (.рф), .by, .xn--90ais (.бел), and .su — will no longer be able to use Namecheap’s email or hosting services.

After some negative replies, accusing Namecheap of going too far, Kirkendall wrote:

We haven’t blocked the domains, we are asking people to move. There are plenty of other choices out there when it comes to infrastructure services so this isn’t “deplatforming”. I sympathize with people that are not pro regime but ultimately even those tax dollars they may generate go to the regime. We have people on the ground in Ukraine being bombarded now non stop. I cannot with good conscience continue to support the Russian regime in any way, shape or form. People that are getting angry need to point that at the cause, their own government. If more grace time is necessary for some to move, we will provide it. Free speech is one thing but this decision is more about a government that is committing war crimes against innocent people that we want nothing to do with.

It’s by some way the strongest stance anyone in the domain industry has yet taken on the war in Ukraine.

Namecheap intends to issue a formal statement outlining its position later today.

Noss pressures bankers, lawyers over Russian oligarch links

Tucows is putting pressure on its outside bankers, lawyers and accountants to come clean about their relationships with Russian oligarchs.

In a series of tweets on Saturday, CEO Elliot Noss said he’d emailed these longstanding partners to ask them about their policies with regards with regard oligarchs’ “essentially laundered” money.

The implication of course is that Tucows would be unhappy to work with any firms whose policies are found lacking.

Here’s the email, reconstructed from Noss’s tweets.

We are writing today because of the Russian invasion of the Ukraine. We note our longstanding relationship with your firm.

We are asking you, and all of our professionals, about your firm’s policy regarding Russian clients, particularly those associated in any way with the current regime. As we imagine you know, most major Russian businesses are either directly or indirectly controlled or associated with the Russian regime. As you also likely know, the funds these companies and their principals, let’s just call them oligarchs, siphon off of these businesses are essentially laundered with the active support of major law firms, banks and accounting firms.

We do not expect you to respond with a firm policy immediately BUT we do expect you to confirm in writing that you have shared this request with your superiors in a way that will most effectively lead to action and we expect you to manage our expectations as to when we may know of your firm’s position.

If you have any questions or would like to discuss this further, please do not hesitate to reach out.

Respectfully Yours,

Elliot Noss
CEO
Tucows Inc.

Registrar hit with second porn UDRP breach notice this year

A Chinese registrar group has been accused by ICANN of shirking its UDRP obligations for the second time this year.

ICANN has put Hong Kong-based DomainName Highway on notice that is in breach of its contract for failing to transfer the domain 1ockheedmartin.com to defense contractor Lockheed Martin.

The domain is a straightforward case of typosquatting, with the initial L replaced with a numeral 1. At time of writing, it still resolves to a page of pornographic thumbnail links, despite being lost in a UDRP case January 4.

Under UDRP rules, registrars have 10 days to transfer a UDRP-losing domain to the trademark owner, unless a lawsuit prevents it.

The circumstances are very similar to a breach notice ICANN issued against ThreadAgent.com over a case of BMW’s brand being cybersquatted with porn last month.

Both ThreadAgent and DomainName Highway appear to be part of the XZ.com, aka Xiamen DianMedia Network Technology Co, which is based in China but has about 20 accredited registrars based in Hong Kong.

DomainName Highway has about 30,000 gTLD domains under management.

Costa Rica’s only registrar gets terminated

Costa Rica no longer has any in-country accredited registrars, after ICANN terminated Toglodo for non-payment of fees.

ICANN told the company last week that its accreditation is terminated effective February 23.

It seems Toglodo owed ICANN thousands of dollars in past-due fees. The Org says had been chasing it for money since at least March last year, but had not managed to make contact.

The registrar once had a few thousand gTLD domains under management, mostly .coms, but that’s dwindled to almost nothing recently. Whatever domains remain, ICANN will attempt to transfer to another registrar.

GoDaddy now making over $1 billion a quarter

It doesn’t seem like five minutes ago that GoDaddy became the first domain registrar to top $1 billion in annual revenue. It was actually 2013. Now, it’s doing that in a quarter.

The company last night reported fourth-quarter revenue of $1.02 billion, almost half of which was from domains, up from $873.9 million a year earlier.

Domains revenue was up a whopping 23.6% at $497.3 million, but this was mainly due to aftermarket sales and the registry business.

The company does not report its domains under management, growth or renewal rates in its quarterly earnings announcements.

CFO Mark McCaffrey told analysts that up to two thirds of the growth could be attributed to the aftermarket, where domains sell at premium prices, and GoDaddy “saw an uptick in both volume and average deal size”.

He also highlighted GoDaddy Registry as a key growth contributor, due to the launch in Q4 of a “reputation protection solution” that I can only assume refers to the AdultBlock service that blocks trademarks in the company’s four porn gTLDs.

GoDaddy sent out renewal notices for AdultBlock, valued at as much as $30 million, in December.

It’s not currently possible to measure the success of AdultBlock from public data sources. GoDaddy expunged the roughly 80,000 blocked .xxx domains from its zone file on December 1. Whereas they previously resolved to a registry placeholder, now they do not resolve at all.

Domains revenue for the full year was $1.81 billion, up 19.5%. Including non-domains businesses, annual revenue was $3.81 billion, up 15%.

The company had 2021 net income of $242.8 million, reversing a loss of $494.1 million in 2020.

Post-lockdown blues hit Tucows’ growth

Tucows’ domain business was pretty much flat in the fourth quarter and full-year 2021, as the company hit the trough following the spike of the pandemic lockdown bump.

The registrar said last night that its Domain Services business saw new registrations down or flat in both wholesale and retail channels, even when compared to pre-pandemic levels.

The company said (pdf) it ended the year with 25.2 million domains under management, down from 25.4 million a year earlier. The total number of new, renewed or transferred-in domains was 17.4 million, down from 18.2 million.

For the fourth quarter, the total new, renewed or transferred-in domains was 4 million, compared to 4.3 million a year earlier.

In prepared remarks (pdf), CEO Elliot Noss said that wholesale-segment registrations were down 6% to 3.7 million in Q4 and new registrations were down 27% from 2020’s pandemic-related “outsized volumes”.

In retail, total new, renewed and transferred registrations for the quarter were just over 310,000, down 16%, he said. New registrations were down 21% year over year.

The domains business reported revenue of $61.4 million in the fourth quarter, down from $61.8 million in the year-earlier period.

Domain revenue from wholesale was down to $47.1 million from $47.5 million. Retail was down to $8.7 million from $9.2 million. EBITDA across both channels was $11.6 million, down from $12.1 million.

The renewal rates for wholesale and retail were a more-than-respectable 80% and 85% respectively.

Some of the declines can be attributed to the pandemic-related bump Tucows and other registrars experienced in 2020.

Margins had been impacted a bit by the acquisition of UNR’s back-end registry business, the integration of which Noss said has now been fully completed.

For the full company, including non-domain businesses such as mobile and fiber, revenue for the year was down 2.2% at $304.3 million and net income was down 41.7% at $3.4 million.

The company also announced it has renewed its $40 million share buyback program.