Donuts’ drop-catching service not anti-competitive, ICANN says | Domain Incite
Donuts’ proposed DropZone service, which could see the registry start charging drop-catchers additional fees, is not anti-competitive, according to ICANN.
The service “does not raise any competition concerns”, ICANN VP Russ Weinstein said in a letter to registrar TurnCommerce, the company behind DropCatch.com.
He was responding to TurnCommerce’s concern that DropZone would allow Donuts to charge unlimited extra fees to register expiring names, while giving an advantage to its in-house registrars.
But Weinstein wrote (pdf):
The information received in the Dropzone RSEP request was thoroughly evaluated pursuant to our process, which included consideration of the matters raised in your letter. ICANN org determined that the Dropzone service as submitted by Donuts Inc. on behalf of [Donuts subsidiaries] Binky Moon, LLC and Dog Beach, LLC does not raise any competition concerns requiring ICANN org to refer either RSEP to a relevant competition authority.
DropZone would see Donuts handle its dropping names on a parallel registry system that registrars would have to obtain separate access to. Its Registry Service Evaluation Process request raises the prospect of new fees for such access.