.COM Domain Prices Increase to $10.26 Starting September 1, U.S. Lawmakers Attempt to Intervene to Stop Further Increases
Brook.X
The Internet Corporation for Assigned Names and Numbers (ICANN) and Verisign have previously reached an agreement that allows them to sign a contract every six years, with the option to renew. According to this agreement, .COM domain prices will not increase in the first two years after a contract is signed; however, a 7% price hike can be applied each year for the following four years.
Starting from September 1 this year, the .COM domain will experience another price increase, moving from 9.59 10.26 per year. It's important to note that this is the wholesale price aimed at domain registrars, meaning the actual registration cost for end-users could be higher.
Verisign's contract is set to expire this year and is expected to automatically renew under the same terms. This means that there will be no price increase for .COM domains in 2025 and 2026, but starting from 2027, the price will continue to rise by 7% annually.
As the registry for .COM domains, Verisign strictly controls the wholesale prices. Given that .COM is the most popular domain on the internet and a significant source of revenue for Verisign, this agreement has drawn criticism from US regulatory bodies.
The chairpersons of the House Committee on Energy and Commerce, the Subcommittee on Communications and Technology, and the Subcommittee on Oversight and Investigations have written to the National Telecommunications and Information Administration (NTIA) requesting more information about the agreement in a PDF letter.
These lawmakers argue that the NTIA, serving as both an advisor to ICANN and a party to the cooperative agreement, has a responsibility to support a domain name system that promotes online commerce. Overpricing and monopolistic practices can hinder the ability of .COM registrants to conduct business online.
The NTIA is asked to address five questions regarding the agreement, including consultations with the Department of Justice and whether a market study was commissioned.
Unless the US government intervenes in the agreement between Verisign, the NTIA, and ICANN, the original contract is likely to be renewed, meaning .COM domain prices will continue to rise. Preventing the renewal of this contract could be crucial to stopping future price increases.
