Open inquiry into Verisign’s .com contract — Republican lawmakers
Three Republican lawmakers have opened an inquiry into Verisign’s (NASDAQ: VRSN) contract to run the .com domain name registry.
House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA), Subcommittee on Communications and Technology Chair Bob Latta (R-OH), and Subcommittee on Oversight and Investigations Chair Morgan Griffith (R-VA) sent a letter (pdf) to the National Telecommunications and Information Administration (NTIA) today.
In the letter, they ask NTIA to provide more information regarding the agreement between NTIA. The letter states:
With both a role in advising ICANN and as a party to the Cooperative Agreement, the NTIA bears responsibility for supporting a domain name system that enables the growth of online commerce. Both individual consumers and businesses depend on responsible management of the .com system. Monopolistic elements and excessive domain name price increases stifle the ability of potential .com registrants to conduct business online.
It asks the NTIA to answer five questions regarding the agreement. Among those are questions regarding consultations with the Department of Justice and whether it has commissioned market studies.
The Verisign contract is due to renew later this year. Per the existing agreement between Verisign and the NTIA, the contract automatically renews at the current terms unless both parties agree to make changes. Those terms will allow Verisign to increase prices by 7% in the last four years of the six-year extension.
Last month, three advocacy groups asked the government to halt the renewal of the contract. Verisign responded by stating that the contract terms can’t be changed without mutual agreement and that it has the presumptive right of renewal.
Verisign notes earnings later today.
