We’re moving forward with vertical integration: ICANN

ICANN posts update on vertical integration.

ICANN just posted an update (pdf) to the issue of “vertical integration” between registries and registrars.

At issue is whether a registry, such as Afilias or VeriSign, can also own a domain registrar, such as GoDaddy.

ICANN has been fairly quiet on the issue despite the window for applying for fresh TLDs coming to a close next month.

But it just posted a letter in response to an inquiry from the GNSO Registry Stakeholder Group.

In the letter, ICANN states that U.S. antitrust authorities do not right now have any open inquiries into vertical integration. The European Commission, still, still has an open dialogue with ICANN. It has stated that it doesn’t have concerns with the concept as a whole, although it is still concerned regarding some larger TLDs such as .com.

I think we’ll see a lot of vertical integration among the registries and a number of registrars applying for fresh TLDs. I don’t think that VeriSign (which runs .com and .net) will pursue vertical integration at this point. Its .com contract is too lucrative to risk by drawing attention from antitrust authorities.