E&C Republicans Open Inquiry into NTIA’s Online Domain Name Registry Contracts Ahead of Renewal

Washington, D.C. — In a new letter to the National Telecommunications and Information Administration, 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) requested information about the agency’s internet domain name registry agreement with Verisign, Inc. (Verisign).

BACKGROUND

  • The NTIA represents the United States government on the Governmental Advisory Committee of the Internet Corporation for Assigned Names and Numbers (ICANN), the multi-stakeholder, not-for-profit entity that was founded in 1998 to coordinate the Internet domain name system, among other Internet management-related activities.
  • Since 2001, Verisign has operated the .com and .net domain name registries.  
  • Verisign manages the .com registry under two agreements—a .com Registry Agreement between ICANN and Verisign and a Cooperative Agreement between the NTIA and Verisign. 
  • Both of these agreements are in place through November 30, 2024. 
  • As the expiration dates of these agreements approach, some have suggested that the NTIA should reassess certain aspects of both agreements.  
  • Under the Cooperative Agreement’s terms, it will automatically renew on November 30, 2024, unless Verisign provides written notice of non-renewal within 120 days of its expiration.  
  • The Department of Justice has previously recommended ICANN hold a competitive bidding process for renewals of registry agreements.  
  • The current agreement, as amended, has allowed Verisign, with ICANN’s agreement, in each of the last four years of every six-year contract period, to increase the maximum price Verisign charges for yearly registration or renewal of a .com name by up to seven percent over the maximum price it charged in the previous year.  
  • Verisign has since instituted a price increase of the maximum amount in every year it was allowed to do so.  

KEY LETTER EXCERPT

“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. 

“As such, we seek more information about the NTIA’s process in considering the renewal of both the Registry Agreement and the Cooperative Agreement.” 

CLICK HERE to read the letter.