Re: [gnso-vi-feb10] Board resolution on Vertical Integration
On 26 Sep 2010, at 21:10, Mike O'Connor wrote: > -- the proposals -- we're about evenly divided in thirds between JN2, Free > Trade and RACK+, is there a way to consolidate them into something that can > be described as rough consensus? We might also want to think about this in light of what the GAC said in their letter to the Board as quoted by Eric: > Begin quote: > > Registry-registrar separation > > The GAC notes the significant work being done within the ICANN community to > resolve the difficult issue of registry-registrar separation. The GAC looks > forward to further discussion of this important issue. > > The GAC notes that CANN has incorporated strict rules in version 4 of the DAG > under which registrars are not able to provide registry services or to > operate a new gTLD. Governments generally support restrictions on vertical > integration and cross-ownership as important devices for promoting > competition, preventing market dominance and averting market distortions. The > GAC notes in this regard the Salop > and Wright report and recognizes that vertical separation may be warranted > where a market participant wields, or may in the future wield, market power. > > However, the GAC also recognises that if market power is not an issue, the > ability of registrars with valuable technical, commercial and relevant local > expertise and experience to enter the domain names market could likely lead > to benefits in terms of enhancing competition and promoting innovation. > > An important additional benefit which the GAC expects would flow from such an > exemption would be that community-based TLD applicants would be able to cast > their net more widely in securing partners with the necessary expertise and > experience in the local market to undertake what would be relatively small > scale registry functions. > > The GAC therefore urges ICANN to resolve the current debate about > registry-registrar separation with a solution that fosters competition and > innovation in the DNS market by allowing exemptions, subject to some form of > regulatory probity that ensures a > level playing field, for certain registrars as potentially valuable newcomers > to the registry market. ICANN may find it useful to consider the experience > of competition regulators around the world in addressing this issue. > > End quote.