March 3, 2006 – (HOSTSEARCH.COM) – The world’s biggest domain name registrar and top web hosting provider GoDaddy.com (http://www.godaddy.com) has slammed this week’s agreement between ICANN and VeriSign claiming it to be against the best interest of the Internet community. In a press release circulated earlier today the company suggested it was ‘outraged’ by the agreement which it claims, “grants VeriSign uncontested price increases and perpetual monopoly power, which will lead to exorbitant profits at the expense of the Internet community.”
The controversial agreement GoDaddy.com opposes stems from a lawsuit between VeriSign and ICANN. The terms of the lawsuit settlement allow VeriSign to raise domain name registration fees by 7% annually in four of the next six years alongside “presumptive renewal” rights when the agreement expires in 2012 – essentially offering VeriSign indefinite control of the ‘.com’ registry.
GoDaddy.com and a number of top registrars (representing around 57 percent of all registered ‘.com’ domains) have questioned the legitimacy of the outcome of a lawsuit which establishes direction for the entire domain registration sector. They also petitioned ICANN to address concerns with the agreement. None of the issues raised in the petition were modified before the ICANN board’s recent vote.
Industry forecasts have suggested that price increases as a result of the agreement may cost the Internet community around $1 billion.
"We are bitterly disappointed, but we're not giving up yet. It's simply a bad deal for the industry and registrants everywhere," said Bob Parsons, CEO and Founder of GoDaddy.com. "The fact that this monopolistic deal was approved is a loud signal that major changes are needed at ICANN. I personally don't have a problem with VeriSign making a fair profit, but that's not what we're talking about here. I have a big problem with VeriSign's windfall profits being accomplished outside of the free enterprise system in which the rest of us must compete. I find it particularly outrageous that because of the special privilege VeriSign wants to be granted, all of us who use the Internet may be denied the economies and innovation that come along as a natural part of our competitive environment."
The U.S. Department of Commerce must approve the new ‘.com’ registry agreement which has spurred a number of lawsuits including those by the ‘Coalition for ICANN Transparency’ and the ‘World Association of Domain Name Developers’. The agreement has also spurred the concerns of certain members of Congress.
