Coalition calls for VeriSign domain monopoly to end by August 2 deadline

The American Economic Liberties Project, together with a coalition of allied organizations, has taken a significant step to end VeriSign Inc.’s long-standing monopoly. for domain registration. Yesterday, they submitted two urgent letters, one to the National Telecommunications and Information Administration (NTIA) and the other to the Department of Justice (DOJ), calling for action before the critical August 2 deadline to stop VeriSign’s no-bid automatic contract renewals.

The coalition’s letter to NTIA implores the agency not to renew VeriSign’s contract, which gives the company monopoly control over major Internet domains, particularly “.com.” That domain remains the most popular and trusted for businesses worldwide. The coalition advocates for a fair bidding process and price caps to prevent unjustified cost increases.

In a letter to the Justice Department, the coalition asks the Justice Department to withdraw the 2018 interagency guidance that allowed the Trump administration’s NTIA to remove contractual protections against price gouging. They also call for an investigation into VeriSign’s financial ties to the Internet Corporation for Assigned Names and Numbers (ICANN), suggesting it may violate antitrust laws.

“VeriSign is a prime example of an economic termite that has used its government-sanctioned domain monopoly to raise prices without justification for far too long,” said Laurel Kilgour, research director at the American Economic Liberties Project. “Through its exclusive agreement with NTIA, VeriSign has made a habit of paying ICANN bribes to maintain its monopoly position and raise costs by 70 percent over the past two decades. Given the critical role of websites in today’s economy, domain name management should be open to competitive bidding and have reasonable safeguards to protect consumers. NTIA can immediately stop this egregious use by terminating its contract with VeriSign, and the Department of Justice should begin an investigation into VeriSign’s relationship with ICANN for antitrust violations.

The letters, co-signed by the Demand Progress Education Fund and the Revolving Door Project, emphasize the importance of awarding government contracts for essential internet infrastructure through open, competitive bidding processes. They emphasize that such contracts must include safeguards to protect consumers against price gouging.

Source: Economic Freedoms