Aussie Regulator Targets Domainers

October 26, No Comments - Author: Simon Johnson

This afternoon I received an email from auDA (the “industry self-regulatory body for the .au domain space”) thanking me for my submission to the Domain Renewal, Expiry and Deletion Policy (2006-07). They kindly informed me that the outcome of the review had been published on their website.

What should concern every investor who buys .com.au are the comments that auDA made in relation to “unofficial drop lists”.

Here is the initial question posed by auDA back in August:

“What action (if any) auDA should take in relation to unofficial domain drop lists, and the domain-catching services being provided by some accredited registrars and other industry participants.”

Here is an extract from the “response to public comments“. I have highlighted particular areas of interest.

“Submissions that commented on this issue were roughly divided between those that argued for no action to be taken, and those that wanted to see this type of activity more directly managed or regulated by auDA.”

“In the latter category, 7 submissions supported the publication of an official domain drop list, and 3 submissions supported the introduction of a centrally managed domain release/auction process.”

auDA Response

“We note that many of the submissions that argued for no action to be taken on this issue came from people who currently provide or use domain-catching services. Other submissions pointed out that ordinary members of the public are not aware of, or do not have access to, these services and are therefore at a significant disadvantage. Our experience in handling complaints and inquiries from the public tends to support this view. We propose to publish an official, authoritative domain drop list. The list would be updated daily and would include the exact date and time that domain names will become available for registration. As with the previous issue, we believe this change would help to level the playing field. It would also help to avoid any confusion or uncertainty which may arise from unofficial drop lists.”

“We have given consideration to proposals that auDA take a more direct role in managing the release of expired and deleted domain names, for example through a centralised auction process. This would represent a major change to the Australian DNS which we do not believe is warranted at this time. Our expectation is that the publication of an official drop list will enable more registrars and other industry participants to offer drop-catching services, which will increase consumer awareness and choice.”

– ends –

So let me get this straight:

1. There were 35 submissions in total, and according to auDAs own statement, 7 supported the publication of a drop list. So the regulator is appearing to ignore the majority of submissions via public comment, and publish their own list anyway.

2. auDA says that “ordinary members of the public are not aware of, or do not have access to, these services and are therefore at a significant disadvantage.” How? Where is the evidence? Anyone can sign up to a drop catching service. How is this being significantly disadvantaged?

3. auDA claims that publishing their “official, authoritative domain drop list” would “help to level the playing field”. I personally believe that this will interfere with the operation of a free market.

4. As for auDA’s expectation that more registrars and other industry participants will “offer drop-catching services, which will increase consumer awareness and choice.” This statement clearly demonstrates complete ignorance of the .au marketplace and how it technically operates.

Looking into my crystal ball, I see:

* Registrars holding onto the domains registered (by users) with them;

* Other registrars (owned by the same company with multiple credentials) having a distinct advantage over the general public;

* Other companies getting into the drop catching business, thinking they can make a quick buck by promising to register a name at a particular time;

* The general public being under the illusion that they can hand register a .com.au that day at 3pm (or whenever the auDA decide the time is);

Its clear to me that we are seeing a bunch of bureaucrats desperately trying to keep themselves in a job, as opposed to letting a free market decide.

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