Re: [gnso-vi-feb10] Board resolution on Vertical Integration

[Avri Doria <avri@xxxxxxx>]

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.