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RE: [gnso-consumercci-dt] CCI: European Commission requests data on competition -- should we include these measures in CCI advice?

  • To: "Tobias Mahler" <tobias.mahler@xxxxxxxxxx>, gnso-consumercci-dt@xxxxxxxxx
  • Subject: RE: [gnso-consumercci-dt] CCI: European Commission requests data on competition -- should we include these measures in CCI advice?
  • From: <john@xxxxxxxxxxxxxxxxxxx>
  • Date: Mon, 06 Feb 2012 11:17:31 -0700

<html><body><span style="font-family:Verdana; color:#000000; 
font-size:10pt;"><div>Tobias,</div><div><br></div><div>I am not familiar with 
the greater than 40 percent measure of dominance, but if we were to move 
forward on that we would be labeling .com (and Verisign) as a monopoly (long 
and still above 50 percent).&nbsp; I think that road might be a cul de 
sac.</div><div><br></div><div>Berard<br></div>
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blue; margin-left: 8px; padding-left: 8px; font-size:10pt; color:black; 
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-------- Original Message --------<br>
Subject: [gnso-consumercci-dt] CCI: European Commission requests data<br>
on competition -- should we include these measures in CCI advice?<br>
From: Tobias Mahler &lt;<a 
href="mailto:tobias.mahler@xxxxxxxxxx";>tobias.mahler@xxxxxxxxxx</a>&gt;<br>
Date: Mon, February 06, 2012 6:50 am<br>
To: <a 
href="mailto:gnso-consumercci-dt@xxxxxxxxx";>gnso-consumercci-dt@xxxxxxxxx</a><br>
<br>
      <font face="Helvetica, Arial, sans-serif"><span class="Apple-style-span" 
style="font-size: 16px;"><font color="#000000">Dear all,<br> <br> As mentioned 
in the last CCI call, the European Commission recently sent a letter to ICANN 
requesting specific information about competition in the domain name market. 
Although this request primarily focuses on vertical integration issues, the 
proposed measures may also, in my opinion, be used to assess competition more 
generally in the context of new gTLDs. The EC asks for "recent figures on 
competition", based on measures described as follows: <br> <br> "(1) <b>recent 
figures on competition at </b><b>registry </b>and registrar <b>level</b>, in 
particular <br> &nbsp;&nbsp;&nbsp; (i) the total number of currently active 
registries and registrars accredited by ICANN, <br> &nbsp;&nbsp;&nbsp; (ii) the 
total number of domain name registrations up to now, <br> &nbsp;&nbsp;&nbsp; 
(iii) the distribution of domain name registrations by gTLD in terms of numbers 
and percentages, and <br> &nbsp;&nbsp;&nbsp; (iv) the share of the twenty 
largest registrars of the total number of domain name registrations (see 
paragraphs 14 and 15 of our non-paper);"<br> <br> See the letter: <a 
target="_blank" class="moz-txt-link-freetext" 
href="http://news.dot-nxt.com/sites/news.dot-nxt.com/files/de-graaf-mccallum-to-beckstrom-crocker-19jan12-en.pdf";>http://news.dot-nxt.com/sites/news.dot-nxt.com/files/de-graaf-mccallum-to-beckstrom-crocker-19jan12-en.pdf</a><br>
 <br> <b>Comparison with our criteria</b><br> 
-------------------------------------------<br> We already cover (i) above, but 
we have </font></span></font><font face="Helvetica, Arial, sans-serif"><span 
class="Apple-style-span" style="font-size: 16px;"><font color="#000000">so far 
</font></span></font><font face="Helvetica, Arial, sans-serif"><span 
class="Apple-style-span" style="font-size: 16px;"><font color="#000000">not 
directly included (ii-iii) . The latter can presumably be used to calculate 
market share, in order to assess whether there are dominant actors (rule of 
thumb &gt;40 % </font></span></font><font face="Helvetica, Arial, 
sans-serif"><span class="Apple-style-span" style="font-size: 
16px;"></span></font><font face="Helvetica, Arial, sans-serif"><span 
class="Apple-style-span" style="font-size: 16px;"></span></font><font 
face="Helvetica, Arial, sans-serif"><span class="Apple-style-span" 
style="font-size: 16px;"><font color="#000000">market share). <br> <br> <br> 
<b>Should market share of gTLD registries be included in CCI advice?</b><br> 
-----------------------------------------------------------------------------------------------------<br>
 </font></span></font><font face="Helvetica, Arial, sans-serif"><span 
class="Apple-style-span" style="font-size: 16px;"></span></font><font 
face="Helvetica, Arial, sans-serif"><span class="Apple-style-span" 
style="font-size: 16px;"><font color="#000000"> Market share is often used as 
indicator of effective competition. If we include these measures now, we may 
</font></span></font><font face="Helvetica, Arial, sans-serif"><span 
class="Apple-style-span" style="font-size: 16px;"><font 
color="#000000">pre-empt possible future criticism from competition authorities 
(through the GAC).</font></span></font><font face="Helvetica, Arial, 
sans-serif"><span class="Apple-style-span" style="font-size: 16px;"> 
</span></font><font face="Helvetica, Arial, sans-serif"><span 
class="Apple-style-span" style="font-size: 16px;"><font color="#000000"><br> 
<br> I am aware of the possibility that the new gTLD program might not be able 
to significantly alter the existing market share </font></span></font><font 
face="Helvetica, Arial, sans-serif"><span class="Apple-style-span" 
style="font-size: 16px;"><font color="#000000">(and potential dominance) of 
</font></span></font><font face="Helvetica, Arial, sans-serif"><span 
class="Apple-style-span" style="font-size: 16px;"><font color="#000000">some 
market actors. However, </font></span></font><font face="Helvetica, Arial, 
sans-serif"><span class="Apple-style-span" style="font-size: 16px;"><font 
color="#000000"> I think we should distinguish clearly between our proposed 
measures and the realistic 3-year targets. Thus, in my view it would be best to 
include market share</font></span></font><font face="Helvetica, Arial, 
sans-serif"><span class="Apple-style-span" style="font-size: 16px;"><font 
color="#000000">, but to be very realistic with respect to what can be achieved 
by the new gTLD program in a 3-years time frame.</font></span></font><font 
face="Helvetica, Arial, sans-serif"><span class="Apple-style-span" 
style="font-size: 16px;"><font color="#000000"><br> <br> Best regards,<br> <br> 
Tobias<br> <br> --<br> Tobias Mahler, PhD<br> Norwegian Research Center for 
Computers and Law (NRCCL)<br> Department of Private Law, Faculty of Law, 
University of Oslo<br> <a target="_blank" class="moz-txt-link-freetext" 
href="http://folk.uio.no/tobiasm/";>http://folk.uio.no/tobiasm/</a><br> Phone 
(office) +47 2285 0087</font><br> <br> </span></font> <div style="font-size: 
16px;"> <div><br> </div> <div>&nbsp;</div> </div>   
</div>
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