1&1 Abandons Custom Mail Service, GMX Remains for Now

One of seven applicants for the .mail top-level domain withdraws its application, signaling potential shifts in the new gTLD landscape.

United Internet logo, representing 1&1 Mail & Media GmbH and its role in the domain industry

In a significant development within the highly competitive domain name space, 1&1 Mail & Media GmbH has officially withdrawn its application for the coveted .mail top-level domain (TLD). This decision comes in the wake of the company receiving two formal objections against its application, raising questions about the strategic considerations influencing such withdrawals in ICANN’s new gTLD program.

The precise motivations behind 1&1’s decision to drop its bid for .mail remain a subject of industry speculation. While the company has not explicitly linked its withdrawal to the formal objections received, the timing suggests a strong correlation. This move leaves a reduced pool of contenders, including internet behemoth Google, vying for control of the highly desirable .mail TLD, which holds immense potential for email-centric services and digital communication platforms.

Understanding the .mail TLD and Its Significance

The .mail top-level domain is one of many new generic TLDs (gTLDs) introduced by the Internet Corporation for Assigned Names and Numbers (ICANN) as part of its ambitious program to expand the internet’s naming system. The goal of this program was to foster innovation, competition, and choice, allowing companies and communities to create specific, intuitive, and branded online identities. A TLD like .mail carries significant weight because it directly relates to one of the internet’s most fundamental services: email. Securing control over .mail could offer a strategic advantage to any company aiming to dominate the email service market, enhance its brand recognition, or provide specialized email solutions.

Given the intrinsic value and widespread utility of email, it’s no surprise that the .mail TLD attracted a robust seven applicants, all recognizing its potential. The competition among these applicants, which included major players like Google, highlighted the strategic importance of this particular domain extension. For 1&1 Mail & Media GmbH, a subsidiary of the global internet services provider United Internet, securing .mail would have been a natural extension of its existing email and hosting services, including its popular Mail.com platform.

The Formal Objections: USPS and UPU Concerns

The withdrawal by 1&1 Mail & Media GmbH followed the filing of two notable objections against its .mail application. These objections originated from prominent international and national bodies, each raising distinct concerns:

1. United States Postal Service (USPS) Objection

The United States Postal Service lodged an objection based on what many in the domain industry deemed a rather unusual legal rights claim. The USPS contended that the term “mail” was intrinsically linked to its historical and statutory mandate, suggesting that a generic TLD like .mail could infringe upon its perceived exclusive rights or confuse consumers regarding official postal services. While the USPS has a clear association with physical mail delivery, extending this claim to a digital TLD often used for electronic communication sparked debate. Critics argued that the term “mail” in the digital context predominantly refers to “email” and has evolved far beyond physical postal services. Nevertheless, the legal challenge posed by a national entity like the USPS introduced a layer of complexity and potential litigation costs for any applicant.

2. Universal Postal Union (UPU) Objection

Adding to the challenges, the Universal Postal Union (UPU), an intergovernmental organization that coordinates postal policies among member nations, also filed an objection. The UPU’s grounds for objection were rooted in community concerns. They argued that the .mail TLD, if controlled by a single commercial entity, could potentially undermine the public interest associated with “mail” services globally, especially concerning the existing infrastructure and services managed by national postal operators. The UPU’s concern was primarily about maintaining the integrity and neutrality of the term “mail” for the broader global postal community, ensuring it doesn’t become monopolized or misused in a way that could disrupt global communication standards or create consumer distrust.

Facing objections from such formidable entities can significantly increase the financial and administrative burden on a TLD applicant. Defending against these challenges involves legal proceedings, expert testimonies, and extensive documentation, all of which incur substantial costs and divert resources. This pressure could certainly have played a role in 1&1’s strategic re-evaluation.

1&1 Mail & Media’s Strategic Landscape and the Mail.com Paradox

The decision by 1&1 Mail & Media to withdraw its .mail application prompts a deeper look into its broader business strategy and existing assets. 1&1 is a key part of United Internet, a large German internet services company that also owns Sedo, a leading domain marketplace. This extensive involvement in the domain and internet services industry means that United Internet and its subsidiaries are highly attuned to market dynamics and strategic opportunities.

One intriguing aspect highlighted by industry observers is 1&1’s ownership of Mail.com. This long-standing and well-recognized domain is a significant asset in the email service sector. The original article posed a pertinent question: “Given that 1&1 owns Mail.com, I don’t understand how these objectors find .mail to be that much more of a threat.” This query underscores a potential paradox. If 1&1 already operates a prominent email service under Mail.com, one might assume that controlling .mail would be a logical synergy.

However, the article also suggests an alternative perspective: “1&1 stands to gain if someone else successfully launches .mail as it will deliver a lot of error traffic to Mail.com.” This theory presents a fascinating strategic calculation. If another entity successfully launches .mail, users might naturally try to navigate to general email services using the new TLD, potentially mistyping or misremembering addresses. A significant portion of this “error traffic” – users inadvertently searching for mail-related services – could, in theory, be redirected or naturally flow towards an established, brand-aligned domain like Mail.com. This influx of traffic, even if initially erroneous, could be monetized through advertising, lead generation, or conversion into Mail.com users, turning a competitor’s success into a tangential benefit for 1&1.

While this “error traffic” theory offers a unique lens, it’s more likely that the direct costs and complexities of overcoming the USPS and UPU objections, combined with a re-prioritization of resources, were the primary drivers behind the withdrawal. The cost of defending legal and community objections can be substantial, potentially outweighing the perceived benefits of acquiring the TLD, especially if other strategic avenues seem more viable.

The Future of the .mail TLD and Other United Internet Applications

With 1&1 Mail & Media GmbH out of the running, the competition for the .mail TLD tightens among the remaining six applicants. The path forward for .mail will now depend on the resolution of any outstanding objections against other applicants and the subsequent evaluation process by ICANN. For companies like Google, which possesses vast resources, navigating such objections might be less daunting, potentially giving them an edge in securing this valuable digital real estate.

Meanwhile, 1&1’s parent company, United Internet, is not entirely disengaging from the new gTLD program. The company has notably retained its application for .gmx. This TLD is considered a “.brand” application, meaning it’s primarily intended for the exclusive use of the GMX brand, another prominent email service provider owned by United Internet. The fact that 1&1 has not yet withdrawn its .gmx application indicates a clear strategic differentiation: while the generic .mail TLD presented too many hurdles and potentially diluted returns, the .gmx TLD represents a direct brand protection and enhancement strategy. The company holds a prioritization number of 1,452 for .gmx, affording it ample time to decide on its final disposition without immediate pressure, allowing for a thorough assessment of its strategic value and the associated costs.

Implications for the gTLD Program and Domain Industry

The withdrawal of a high-profile applicant like 1&1 Mail & Media from the .mail TLD race underscores several broader implications for ICANN’s new gTLD program and the domain industry at large:

  • Cost and Complexity: The incident highlights the significant financial and legal complexities involved in acquiring and defending new gTLDs, especially those attracting multiple applicants and formal objections. These barriers can deter even well-resourced companies.
  • Strategic Re-evaluation: It demonstrates that companies are continuously re-evaluating their domain strategies, weighing the potential benefits of new TLDs against the costs of application, defense, and long-term operation.
  • Influence of Objections: The power of formal objections from entities like the USPS and UPU is evident. These objections, whether based on legal rights or community concerns, can fundamentally alter the landscape of TLD applications.
  • Brand vs. Generic TLDs: The contrasting decisions on .mail and .gmx by United Internet illustrate the different strategic values placed on generic, open TLDs versus specific, brand-aligned TLDs. Brand TLDs offer direct control and brand protection, while generic TLDs offer broader market opportunities but often come with more competitive and regulatory challenges.

In conclusion, 1&1 Mail & Media GmbH’s withdrawal from the .mail TLD application process is a noteworthy event in the evolving world of domain names. It reflects the intricate balance of strategic objectives, financial considerations, and the regulatory challenges that define the new gTLD program. While the immediate focus shifts to the remaining applicants for .mail, this development provides valuable insights into the decision-making processes of major internet entities and the ongoing dynamics of internet governance.