ICANN, the organization responsible for managing global domain names, has reached an agreement with VeriSign to sign a contract every six years, with the option to renew upon expiration. The first two years of the contract do not see any price increase for domain names, but in the following four years, the price of .COM domains increases by 7% annually.
Starting from September 1st this year, the price of .COM domains has increased again from last year's adjustment, rising from $9.59/year to $10.26/year. It is important to note that this is the wholesale price aimed at domain registrars, and the actual price for users may be higher.
VeriSign's contract is set to expire this year and is expected to be automatically renewed under the original terms, meaning that there will be no price increase for .COM domains in 2025 and 2026. However, starting from 2027, the price will continue to increase by 7% annually.
As the registry for .COM domains, VeriSign strictly controls the wholesale price of these domains, as they are the most popular on the internet and a significant source of revenue for VeriSign. This agreement has also raised concerns from US regulatory agencies.
The Chairmen of the House Energy and Commerce Committee, Subcommittee on Communications and Technology, and Subcommittee on Oversight and Investigations have written to the NTIA requesting more information about the agreement. They argue that NTIA acts as both an advisor to ICANN and a party to the cooperative agreement, and has a responsibility to support the domain system that promotes online commerce. Consumers and businesses rely on responsible management of .COM domains, and monopolistic practices and high domain prices can hinder the ability of registrants to conduct business online.
NTIA is required to respond to the five questions raised by these lawmakers regarding the agreement, including discussions with the Department of Justice and whether market research studies have been commissioned.
However, unless the US government intervenes in the agreement between VeriSign, NTIA, and ICANN, the existing contract is likely to be renewed, leading to continued price increases. If this contract renewal can be prevented, it may be necessary to stop further price hikes for .COM domains in the coming years.