The planned price hike for .com domains in the coming years is brought on by the new agreement between ICANN and Verisign.
The Internet Corporation for Assigned Names and Numbers (ICANN) made an agreement with Verisign to raise the wholesale price for the .com domains. This new agreement enables Verisign to increase the price of the domain for up to 7% every year until 2023.
The price hike will halt for two years and will continue increasing between 2026-2029. This price hike would mean that the current cost will increase for up to 70% for the next decade. The company is expected to increase its revenue by $800 million.
The end of the price freeze
Obama’s presidency started the price freeze, it was referred to as the Obama-era which started in 2012. The domain cost was kept at $7.85. With ICANN and Verisign’s deal, they could end the Obama-era and increase the domain price. It will also allow Verisign to operate its own registrar and be able to offer more domains to potential site owners and compete against other DNS businesses.
As part of the deal, Verisign is giving ICANN $20 million starting in January of 2021. This money will be used to enhance the security, stability, and resiliency of the DNS. Internet Commerce Association which represents GoDaddy, however, publicly opposed this agreement between Verisign and ICANN. This deal effectively allows Verisign to monopolize the .com domain.
What does this mean for you?
It is assumed that the increased domain cost will be passed on to the consumers. Nothing is truly final as both parties haven’t made any press release to explain the matter further.
Other domains won’t be affected especially the top-level domains. According to stats via Namecheap, out of the 359.8 million domain names, 144 million of which are using the .com domain.
The public is encouraged to voice out their opinion via their website. If you have any objections to the agreement, you can still register your objection to amending the deal until February 14th, 2020. You can check out the comments and the negative backslash that this agreement is getting by far on this site.
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