Registry nukes expired domain auctions — .Co domain
Registry will prohibit direct auctions when domains expire.
This post has been updated with additional analysis regarding why .co might be instituting its policy.
The .co domain name registry is implementing a fresh rule that will prevent domain registrars from auctioning off expired domains unless they obtain permission from the registry, Reglike has learned.
Under the fresh policy, which will be implemented no later than October 1, “registrars will be required to adhere strictly to the .CO domain lifecycle and must not facilitate or execute changes in ownership of domain names that have expired and have not been renewed by the original registrant, unless expressly authorized by the .CO Registry.”
Right now, most sizable domain registrars either auction domains themselves or through a partner when a domain expires, and the registrant doesn’t renew it. For example, GoDaddy Auctions right now sells domains expiring at GoDaddy, Tucows, Squarespace, and dozens of other registrars.
The registrar captures the upside of the auction, and the registry gets domain renewal income.
But .co is putting an end to this practice, and there could be a couple of reasons.
First, .co introduced premium renewals following launching its name. Existing registrations are grandfathered in, so if they are directly transferred, the registry never gets the premium. If they fully delete and are then re-registered, the premium will apply.
Second, the registry could want to get a piece of the pie from auctions.
The registry is asking registrars to “contact the .CO Registry to discuss authorization and alignment with this policy.”
One would assume it will ask them to pay a portion of the proceeds to the registry in return for the authorization.
Alternatively, the registry may be planning to run its own expired domain auctions and wants to ensure high-quality inventory gets through the deletion cycle so it can sell it. For example, Anguilla’s .ai auctions expired domains through Namecheap.
As a country code top level domain, .co is not subject to ICANN rulemaking and can change policies as it wishes.
GoDaddy (NYSE: GDDY) will be the most affected by this change. It’s a bit ironic, since GoDaddy previously managed the .co TLD ahead of losing the contract to a partnership between Team Internet (AIM: TIG, OTCQX: TIGXF) and CCI Reg last year.
GoDaddy may have some chips to play, still. As the largest domain registrar, it could demote .co in its search path.
