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Story URL: http://management.silicon.com/government/0,39024677,11011266,00.htm

EU to probe Network Solutions

By Sally Watson

Published: Thursday 01 July 1999

The European Union (EU) has launched an investigation into alleged anti-competitive practices of domain name registrar, Network Solutions (NSI).

Last week, all accredited registrars received a letter from the competition directorate of the EC making a 'formal request' for information about NSI.

A copy of the letter obtained by Silicon.com, says the directorate is investigating, "certain agreements on the market for the registration of top level domains" (such as .com and .net). It continues by stating that the EC wishes to determine whether the agreements fall within European fair-trade laws or, "could constitute an abuse of NSI's dominant position".

NSI has faced heavy criticism over its handling of the deregulation of the domain name market since the US government handed over responsibility to industry last autumn. The main complaint from prospective registrars is that NSI wants too much control over their business, while leaving them with all the liability.

Jonathan Robinson, chief executive of registrar NetBenefit, welcomed the move. "It's a good thing that the EC is on the case. It's very important this is recognised as a world issue rather than just a US government problem," he said.

"It's very important to have a level playing field as the market deregulates," he continued. "The key is establishing competition fast and not allowing spurious issues to get in the way."

According to Ivan Pope, chairman of domain name registration company, NetNames, NSI's current agreement is "very restricting and very controlling".

Pope also claimed the industry's controlling body, Icann (Internet Corporation for Assigned Names and Numbers), is also making life difficult for smaller companies. "We've moved from having operated without problems for years, to having two very powerful companies on our back," he said.

Pope is not optimistic about a quick conclusion either. "There is no resolution in sight," he said, "NSI has just extended the test-best period into July - it was supposed to help everyone else understand the issues, but there is no information coming out - NSI will manipulate things to their own ends."

The EU has given the registrars ten days to reply to its letter.

NSI refused to comment.