Private auctions to be banned in next new gTLD round

ICANN plans to ban private auctions in the next new gTLD application round, chair Tripti Sinha has told governments.

The board of directors plans to accept the Governmental Advisory Committee’s recent advice to “prohibit the use of private auctions in resolving contention sets in the next round of New gTLDs”, Sinha told her GAC counterpart in a letter published this week.

This is a significant departure from the 2012 round, where many contention sets were resolved privately, with tens of millions of dollars changing hands. Simply applying for a gTLD, in order to lose an auction rather than actually running a registry, will quite possibly no longer be a business model.

What replaces private auctions is yet to be determined. ICANN plans to publish a paper and hold two community webinars in August to discuss alternatives, and reach a decision at its meeting in early September.

Sinha warned that if it cannot reach a conclusion by the September meeting, it might delay the publication of the Applicant Guidebook and thus the opening of the next application window.

It’s quite an aggressive deadline, given the complexity of the problem. ICANN is essentially trying to figure out a way to prevent unscrupulous actors from attempting to game the system for financial gain.

Ideas such as allowing good-faith joint ventures to be formed between competing applicants have been floated in recent months, but have faced scrutiny as they might permit side-deals to be inked that have the same effect as private auctions.

What seems certain is that “last resort” auctions — where ICANN gets all the money for its already $200 million war chest — will still be an option in the next round, which is current penciled in for the first half of 2026.

ICANN’s board plans to pass resolutions on the matter next Monday, so we should have a little more clarity by the start of August at the latest.

ICANN to earmark $10 million for new gTLD subsidies

ICANN is planning to give $5 million of its auctions war-chest to new gTLD applicants from less well-off nations and wants community feedback on the idea.

The Org is sitting on over $200 million raised by auctioning gTLDs from the 2012 application round, and thinks some of it could be well-spent on subsidizing applicants in the next round.

It wants to create a $10 million fund for the Applicant Support Program, half of which will come from the auction proceeds and half of which will be covered by the existing program budget.

ICANN says this will be enough to provide “meaningful support for up to 45 new gTLD applicants”.

The auction funds have previously been used to replenish ICANN’s reserve and to launch the new Grant Program, which is making $10 million available with year to worthy, on-topic projects.

Clearly, at that rate, the Grant Program may well never exhaust the auction fund, given the likelihood of future auctions and investment gains over the next couple of decades.

The Applicant Support Program will be open to non-profit or small business applicants in most of the world’s territories, as I previously blogged. In the 2012 round, three applicants applied but only one received the discount.

The request to divert some of the cash into the ASP is not subject to a regular public comment process. Rather, ICANN’s community groups have been asked to send their thoughts to the board directly before August 12.

Eight interesting recent dot-brand registrations

If somebody told me that this blog spends altogether too much time shitting on dot-brand gTLDs, I probably wouldn’t argue with them very long or hard before conceding they probably have a point.

So I thought it might be useful, in the interests of balance, to occasionally (perhaps monthly) highlight some of the more interesting dot-brand registrations I’ve spotted recently.

There’s usually plenty to choose from — 34 dot-brand registries registered a total of 135 domains in June, many of which already resolve to live web sites, and there have been over 25,000 registrations to date — so these picks are purely subjective.

lra.amazon

LRA could stand for a great many things, but one of those things is Labour Relations Agency, which raises an eyebrow given that Amazon is currently fighting its warehouse workers’ attempts to unionize in the UK. Right now, it doesn’t resolve for me.

showthemyourpride.itv

I’ve seen this one promoted on the actual television here in the UK! It’s a campaign by broadcaster ITV, fronted by comedian Alan Carr, to get people to make gay people’s lives a little easier by calling out homophobia and such. It was registered June 27, when Pride Month was pretty much over.

go.volvo

The domain only leads to a 404 right now, but it’s notable because it’s Volvo’s first registered .volvo domain and the name is suggestive of some kind of planned portal site or redirect function. Fifty other dot-brands already have go.brand domains registered. Car brands have had a mixed history in the dot-brand space — some have enthusiastically embraced the concept, others have cancelled their registry contracts. In the first category, both .bmw and .mini also received “go.” registrations in June.

listen.afl

.afl is for the Australian Football League, and this domain redirects to a directory of its podcasts on its main .com.au web site.

ca.pioneer

Providing national portals using two-letter country codes at the second level is a fairly popular dot-brand use case, with Germany’s .de the most popular if you exclude strings that are also English words (my, id, it, etc). You might expect ca.pioneer to lead you to a Canadian portal, but it actually takes you to… ahem… usa.pioneer.

admaker.jio

Indian telco JIO is using this domain for a service that makes advertisements, believe it or not. It has about 20 other .jio domains, like stream.jio and translate.jio, that lead, without redirects, to similar hosted apps.

gpt.lundbeck

Registered by the pharma giant back in May, this is the second registered “gpt” in a dot-brand after gpt.fox. Presumably standing for AI buzz-phrase Generative Pre-trained Transformer, I can’t tell you what either site does because they’re password protected. Lundbeck has over 270 .lundbeck domains, most of which resolve.

beam.google

Could this be the eventual brand for Google’s Project Starline videoconferencing technology, which was first announced back in 2021? It certainly seems possible, given that this April-registered domain leads, without a domain redirect, to the Starline web site.

Unstoppable announces another new gTLD bid

In the run-up to the 2012 new gTLD application round, we were hard-pressed to find a company willing to announce an application. This time around, announcements are coming out of the blockchain world at the rate of about one a week.

Unstoppable Domains has announced that it’s working with Raiinmaker Network to operate .raiin, first as a blockchain-only namespace and later as a new gTLD hopeful.

Raiinmaker says it developers a blockchain protocol that “utilizes decentralized AI and scalable Web3 powered infrastructure to transform the distribution of value tied to authentic identity, data and behavior.”

No, me neither.

Unstoppable said it “will be planning and strategizing with Raiinmaker Network for the next ICANN gTLD application to further solidify its place in the digital landscape.”

It’s the tenth potential application the company has publicly revealed.

Governments call for new gTLD auctions ban

Governments have upped the stakes in their opposition to new gTLDs being auctioned off privately, now calling for an outright prohibition on the practice.

ICANN’s Governmental Advisory Committee today published its formal advice coming out of last week’s public meeting in Kigali, calling for ICANN to “prohibit the use of private auctions in resolving contention sets in the next round of New gTLDs”.

It’s a strengthening of previous language from last year’s Washington DC meeting which called for ICANN to “ban or strongly disincentivize private monetary means of resolution of contention sets, including private auctions”.

Private auctions were the most-common way that contests between new gTLD applicants with matching strings were resolved in the 2012 application round. Many tens of millions of dollars changed hands, with the losing bidders pocketing the winning bids.

But the practice came in for criticism from groups such as the GAC and the At-Large Advisory Committee, partly because it made it harder for non-commercial or less well-financed developing-world applicants to get a foothold in the gTLD space.

“The 2012 round was basically a game for millionaires,” ALAC chair Johnathon Zuck told the GAC at a meeting between the two groups last week. “There were many things that made the last round kind of a joke… but this was the very big thing that made the community look bad.”

Discussions with the ALAC, which wanted to issue joint advice with the GAC, seems to be at least partly responsible for the GAC aligning around advising a full-on ban on private auctions.

ICANN’s board of directors is broadly in favor of “discincentivizing” private auctions, but has stopped short of advocating for a full prohibition, according to directors’ public statements and board resolutions.

The Org commissioned a study from a New York company called NERA Economic Consulting, published shortly before the Kigali meeting, to look into ways to dissuade applicants from private auctions and encourage them towards ICANN’s “last resort” auctions — where ICANN gets all the money — or into joint ventures.

While it did not come up with any recommendations as such, the study did lay out some possible mechanisms — such as forcing applicants into last-resort auctions, or making them pay an extra fee if they want to resolve their contention sets privately.

Separately, ICANN has told the GAC it intends to reject another piece of its advice related to contention sets. The GAC had told ICANN last year:

To take steps to avoid the use of auctions of last resort in contentions between commercial and non-commercial applications; alternative means for the resolution of such contention sets, such as drawing lots, may be explored

But ICANN reckons a lottery might be illegal under California law. That’s pretty much what it said before it came up with “Digital Archery” during the last application round, and it turned out to not be completely correct.

It also disagrees with the GAC that non-commercial applicants in contention sets should be treated preferentially, with the board wary about having to pick winners and losers in the next round.

The board has therefore triggered the part of its bylaws that require it to hold formal negotiations with the GAC to see if they can come to a compromise before the advice is rejected.

ICANN: We will NOT police content

ICANN seems to have killed off the idea of content-restricting Registry Voluntary Commitments being included in registry contracts, judging by a conversation today between its board of directors and Governmental Advisory Committee.

Speaking moments ago at a session at ICANN 80 in Rwanda, director Becky Burr said the board took legal advice and decided that the Org’s bylaws do not allow it to enforce contractual commitments that involve content regulation.

“The board was looking at the legal issues there to determine whether under our bylaws we were permitted to accept and enforce Registry Voluntary Commitments related to the restriction of content… on Saturday at our board meeting the board has resolved that we can’t,” Burr said.

“We will not accept into the contracts the new registry commitments that involve the restriction of content,” she said.

The RVC-like Public Interest Commitments found in 2012-round gTLDs are grandfathered in the current bylaws and will not be affected by the RVCs decision, she said.

Registries will be free to make RVC-like commitments outside of their ICANN contracts, but ICANN will not enforce them, she said. She also said the board has ruled out hiring a third party enforcer, citing US case law and the First Amendment to the US constitution.

Burr said that if an Independent Review Process panel struck down a single RVC it would risk invalidating all of the RVCs in all registry contracts.

The board’s resolution will be published later this week, but its legal advice will remain confidential, she said.

The decision is a win for registries and registrars, which earlier this year responded to an ICANN consultation by saying it should not permit RVCs that regulate content. The Non-Commercial Stakeholders Group had even raised the possibility of legal action if ICANN went ahead with RVCs.

The opposing view was put forth by the Business Constituency, the Intellectual Property Constituency, and the At-Large Advisory Committee, all of which are now presumably feeling bummed out by the board’s latest decision.

More sticker shock as new gTLD fees could top $300,000

The base new gTLD application fee could top $300,000, according to an analysis released by ICANN at its meeting in Kigali, Rwanda, this morning.

The per-gTLD fee will likely range between $208,000 and $293,000, according to the latest estimate, but this does not include mandatory fees that have yet to be figured out that as a whole could amount to “tens of millions”.

ICANN is blaming inflation for most of the increase from the 2012 round, where the fee was $185,000. Staff said that if you take into account a 44% rise due to 14 years of inflation, the 2026 application fee could actually be lower in real-money terms.

The reason for the broad range provided is that ICANN still doesn’t have a good guess as to how many applications it will receive. The program is being run on a cost-recovery basis and ICANN has already budgeted for a spend of $70 million before the application window even opens.

If it only receives 500 applications, it could lose tens of millions of dollars even with a high application fee. With a fee of $242,000, ICANN would need 1,000 applications to make its money back, staff said during an ICANN 80 session today.

There were 1,930 applications in 2012, but demand in 2026 will depend a lot on how many desirable strings remain undelegated, particularly in non-English languages and non-Latin scripts, and how enthusiastic brand owners are about the dot-brand concept (or defensively registering their dot-brands).

The main unknown not included in the latest estimate is the cost of implementing the recommendations of the second Name Collision Analysis Project, which in May called for all gTLDs to be tested live in the DNS before being awarded to the applying registry.

Each of the NCAP2 recommendations could cost between “thousands” and “tens of millions” in total, which would be divided between all the applicants, staffers said. Scrawling on the back of an envelope, it looks to me like this could easily push the top end of the range well over $300,000.

The good news is that if ICANN gets a lot of applications and recovers its costs, it already anticipates giving applicants some of their money back. As an example, it said that if the fee is $220,000 and there are 2,000 applications, applicants could each get $35,000 back.

But that ray of sunlight was not enough to temper the concerns of community members in the room in Kigali today, several of whom sparred with CFO Xavier Calvez and new gTLD program lead Marika Konings over their calculations.

Registry services providers are already angry about the large increase in evaluation fees for the RSP program announced last month.

One thing that doesn’t seem to be under any dispute is that high fees will scare off some applicants, meaning the cost burden will be borne by fewer shoulders, meaning the fees did in fact need to be high; a self-fulfilling prophecy.

Secret new gTLD application revealed

Unstoppable Domains has revealed the next partner with which it intends to apply to ICANN for a new gTLD two years from now.

It’s linked up with Secret Network Foundation to apply for .secret and in the meantime to flog .secret names that only work on its Polygon blockchain naming system.

Secret is a startup that develops privacy-oriented, blockchain based applications.

It’s the sixth likely new gTLD application Unstoppable has announced this year.

WhatsApp now linkifying new gTLDs, but…

All URLs using new gTLD domains are now being automatically linkified by WhatsApp, according to the registry manager who’s been pushing for greater support from the major social networks.

Rami Schwartz of Latin American Telecom, the .tube registry, says that WhatsApp on Android devices is now making all new gTLD domains clickable even without the http:// prefix, but that the app on Apple devices has not yet caught up.

Schwartz discovered last year that WhatsApp did not support any gTLD delegated after November 2015, apparently due to the app relying an outdated hard-coded list of gTLDs in Android.

While the list was quickly updated, it’s taken a while for support to trickle down to devices.

Schwartz credited the WhatsApp team at Meta in the UK and ICANN technology specialist Arnt Gulbrandsen with getting the linkification support accomplished. He said he hopes iOS support will come soon.

Outrage over ICANN’s new gTLD fees

Is ICANN stifling competition and pricing out the Global South by setting its new gTLD evaluation fees too high? A great many community volunteers seem to think so, judging by recent conversations.

The Org last week revealed that it plans to charge registry service providers that want to participate in the next application round $92,000 for their technical evaluation, on top of the estimated $250,000 fee that it will charge for each applied-for string.

Critics have pointed out that a roughly equivalent evaluation, used when a 2012-round gTLD switches to an unknown back-end, currently costs about $14,300, and they’re baffled as to why ICANN plans to up its fees so much.

The Registry Service Provider Evaluation Program was intended to cut a lot of waste and duplication from the new gTLD program. Instead of doing a technical evaluation on an RSP for each gTLD application, the RSP is evaluated once and each applicant simply selects an RSP from a list of approved companies.

ICANN says the program will cost $4.1 million overall, with $2 million of that already mostly spent on the design and implementation phase. It’s expecting all of the existing 40-ish back-end providers to submit to evaluation, along with an unknown number of newcomers.

Assuming fewer than 50 participating RSPs, ICANN will charge $92,000 per RSP. The program is designed to be run on a cost-recovery basis. ICANN says it will lower the price and issue refunds if there are significantly more participants.

Despite that caveat, ICANN staffers running the new gTLD program have faced a barrage of criticism over the last week from members of the SubPro Implementation Review Team, the community volunteers tasked with making sure staff implementation sticks to community policy.

The high-end of the fee scale is high enough that it will essentially “kill off” the RSP market in the Global South, according to Rubens Kuhl of Brazilian ccTLD registry Nic.br, which currently runs the back-end for a handful of 2012-round strings.

The term “Global South” refers to less-wealthy countries largely in the southern hemisphere, mainly in Africa, Asia and Latin America, where $92,000 goes a lot further than it does in North America or Europe.

“What ICANN is suggesting right now simply kills off all Global South RSPs,” Kuhl said during a call yesterday. “Those RSPs could have the technical capability to run gTLDs, and they run very large ccTLDs… It simply seems like a system designed to keep the Global South out.”

Gustavo Lozano Ibarra, director of technical services projects at ICANN and former NIC Mexico employee, responded first by saying that gTLD applicants in the next round from the Global South do necessarily have to chose an RSP from their own region.

“I completely understand that there could be some RSPs in the Global South with capabilities for which the fee could be an issue,” he said. “I think that we get that, and I think that maybe the lack of an Applicant Support Program for the RSPs is something that we need to take into consideration for the next round.”

“So, this round, no Global South. Okay, thank you,” said Kuhl.

“I don’t think this proposed US$92,000 RSP pre-evaluation fee is going to encourage diverse participation in the next nTLD round, especially from developing regions,” Neil Dundas of South African RSP DNS Africa said on the IRT’s mailing list.

“It’s a new financial barrier to entry that previously was not there and it will almost certainly hamper participation from developing regions,” he said.

Mailing list chatter suggests that this potential barrier to entry is something that ICANN’s Governmental Advisory Committee may take a dim view of when the community convenes in Rwanda for ICANN 80 next month.

ICANN is also taking flak for how it is calculating the total cost of the RSP program. Consultant and registry operator Jeff Neuman accused the Org of “double-dipping” by charging for staffers’ work on the program, which he said should already be covered by the fees registries, registrars and ultimately registrants pay into ICANN’s budget.

Responding to criticism that ICANN has over-spent, Ibarra pointed out on yesterday’s call that $4.1 million is a fraction of the $22 million he said ICANN spent on technical evaluations in the 2012 application round.

In addition, RSPs that are attached to potentially dozens of gTLD applications will save a lot of money by only paying to be evaluated once, he said.