[bc-gnso] ICANN Board Votes to Enhance New gTLDs Competition - New gTLD Registrars and Registries will Compete for the Benefit of Consumers

[martinsutton@xxxxxxxx]

http://www.icann.org/en/announcements/announcement-09nov10-en.htm

ICANN's Board of Directors voted to allow new gTLD registries to own 
registrars, opting not to create new rules prohibiting registrars from 
applying for or operating new gTLD registries.
Following over two years of community discussions, which had not resulted 
in consensus, the Board carefully considered expert economic advice, 
community comments, and numerous proposed approaches to registry-registrar 
cross-ownership.
"In the absence of existing policy or new bottom-up policy 
recommendations, the Board saw no rationale for placing restrictions on 
cross-ownership;" said Peter Dengate Thrush, Chairman of the Board. "Any 
possible abuses can be better addressed by properly targeted mechanisms. 
Co-ownership rules are not an optimal technique in this area."
Under the Board resolution additional enforcement mechanisms have been 
added. New gTLD registry agreements are to include: (1) a Code of Conduct 
prohibiting any misuse of data or other abusive conduct arising out of 
registry-registrar cross-ownership; (2) robust auditing requirements; (3) 
graduated sanctions up to and including contractual termination and 
punitive damages; and (4) ICANN's right to refer competition issues to 
appropriate government competition authorities.
Background: The cross-ownership provisions have varied over time and no 
formal "policy" on this topic has ever been recommended or adopted by 
ICANN. (For example, each of the seven new gTLDs delegated by ICANN in the 
2000-2001 proof-of-concept introduced by ICANN in 2000 have featured some 
degree of registry-registrar cross-operation or cross-ownership.)
The ICANN community has been discussing whether to continue, expand or 
remove the restrictions in current registry agreements that limit the 
existing registries from owning more than 15% of a registrar. Some have 
urged the creation of new rules that would for the first time prohibit 
registrars from applying for or operating new gTLDs.
The ICANN Board had previously attempted to spur a consensus view, asking 
ICANN's GNSO to resolve the registry-registrar cross-ownership question. 
In May 2010, the ICANN Board encouraged the GNSO to develop a consensus 
based policy on this issue, but indicated that the Board would review the 
issue if no consensus position was reached. The GNSO recently reported 
that it has been unable to reach consensus.

Martin C SUTTON 
Group Risk 
Manager, Group Fraud Risk and Intelligence | HSBC HOLDINGS PLC HGHQ
Group Security & Fraud Risk
8 Canada Square,Canary Wharf,London,E14 5HQ,United Kingdom
________________________________________________________________

Phone.     +44 (0)20 7991 8074 / 7991 8074
Mobile.     +44 (0) 7774556680
Email.       martinsutton@xxxxxxxx
________________________________________________________________

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