Registry will prohibit direct auctions when domains expire.
This post has been updated with additional analysis about why .co might be instituting its policy.
The .co domain registry has announced a new policy that will prevent registrars from conducting direct auctions for domains that have expired unless the registry grants explicit authorization. The change, set to take effect no later than October 1, requires registrars to follow the .CO domain lifecycle strictly and prohibits transferring ownership of expired names that the original registrant did not renew, except when expressly authorized by the registry.
At present, many major registrars run their own expired-domain auctions or partner with auction platforms. In those cases, registrars benefit from auction proceeds while the registry receives renewal fees. Under the new rule, that dynamic will change for .co domains.
There are at least two plausible motivations behind the registry’s decision. First, .co introduced a premium renewal structure after its initial launch. Existing registrations created before that change were grandfathered and do not automatically trigger premium pricing if ownership is transferred directly. If a domain fully deletes and becomes available again through the normal expiration and deletion cycle, the registry can apply its premium pricing on re-registration. Restricting direct transfers and auctions could ensure the registry captures premium revenue when valuable names re-enter the market through deletion.
Second, the registry may be looking to secure a share of auction revenues or to control which expired domains reach the open market. By requiring registrars to seek authorization, the registry can negotiate terms, potentially taking a portion of proceeds for authorized transfers or auctions. Alternatively, the registry might plan to operate or authorize specific auction channels itself, ensuring that inventory achieving the deletion cycle lands in approved marketplaces. There are precedents for country-code registries managing expired-domain sales: for example, Anguilla’s .ai has run expired-domain auctions through partners.
As a country-code top-level domain, .co is not bound by ICANN policy changes in the same way as generic TLDs and can implement lifecycle and transfer rules at its discretion. The registry has instructed registrars to contact the .CO Registry to discuss authorization and alignment with the new policy, indicating an intent to formalize how expired .co names are handled going forward.
Large registrars that currently operate auctions will be most affected. GoDaddy, which handles a substantial share of domain registrations and has historically offered expired-name auctions, is likely to see a meaningful impact. Ironically, GoDaddy previously managed the .co TLD before losing the contract last year to a partnership between Team Internet and CCI Reg. That history adds an extra layer of complexity to how registrars and the registry will negotiate the new authorization process.
Registrars could respond in several ways. Some may seek authorization and negotiate revenue-sharing or other terms with the registry. Others might choose to cease auctioning expired .co names, instead allowing them to progress through the registry-controlled lifecycle so the registry can apply premiums or route names through authorized channels. Large registrars also have leverage: for example, a registrar could deprioritize .co in its search results or product flows if it deems the registry’s terms unfavorable, though such moves carry their own business and customer-relations risks.
Overall, the policy marks a significant shift in how expired .co domains will be handled. By centralizing control over transfers of expired names and requiring explicit registry authorization, .co aims to capture additional value and exert more control over the post-expiration market for its namespace. Registrars and marketplace operators will need to engage with the registry to clarify operational and commercial arrangements ahead of the October implementation deadline.