Elizabeth Warren Calls for Crackdown on Internet ‘Monopoly’ You’ve Never Heard Of

November 22, 2024:

US senator Elizabeth Warren of Massachusetts and congressman Jerry Nadler of New York have called on government bodies to investigate what they allege is the “predatory pricing” of .com web addresses, the internet’s prime real estate.

In a letter delivered today to the Department of Justice and the National Telecommunications and Information Administration, a branch of the Department of Commerce that advises the president, the two Democrats accuse VeriSign, the company that administers the .com top-level domain, of abusing its market dominance to overcharge customers.

In 2018, under the Donald Trump administration, the NTIA modified the terms on how much VeriSign could charge for .com domains. The company has since hiked prices by 30 percent, the letter claims, though its service remains identical and could allegedly be provided far more cheaply by others.

“VeriSign is exploiting its monopoly power to charge millions of users excessive prices for registering a .com top-level domain,” the letter claims. “VeriSign hasn’t changed or improved its services; it has simply raised prices because it holds a government-ensured monopoly.”

VeriSign did not immediately respond to a request for comment. But in an August blog post entitled “Setting the Record Straight,” the company claimed that discourse around its management of .com had been “distorted by factual inaccuracies, a misunderstanding of core technical concepts, and misinterpretations regarding pricing, competition, and market dynamics in the domain name industry.”

In the same blog post, the company argues that it is not operating a monopoly because there are 1,200 generic top-level domains operated by other entities, including .org, .shop, .ai, and .uk.

Though far from a household name, VeriSign takes in about $1.5 billion in revenue each year for servicing its particular section of the internet’s inscrutable plumbing.

In their letter, Warren and Nadler allege that VeriSign has exploited its exclusive right to charge for highly sought-after .com addresses to juice its revenues and drive up its share price—all at the expense of customers for whom there is no viable alternative.

The letter claims that separate agreements with the NTIA and Internet Corporation for Assigned Names and Numbers (ICANN), a nonprofit established by the Commerce Department to oversee the web’s domain name system, have allowed VeriSign to establish monopoly power. The former sets how much the company can charge its customers for registering .com addresses, while the latter assigns VeriSign as the “sole operator” of the .com domain. The letter also alleges that VeriSign might be in violation of the Sherman Act.

Source link

tags

Abkhazia Afghanistan Africa Albania Algeria Andorra Angola Antigua and Barbuda Argentina Armenia Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Benin Bolivia Bosnia and Herzegovina Botswana Brazil Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Cape Verde Central African Republic Chad Chile China Colombia Comoros Costa Rica Croatia Cuba Curacao Cyprus Czech Republic Denmark Djibouti Dominica Dominican Republic East Timor Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Fiji Finland France French Polynesia Gabon Gambia Georgia Germany Ghana Greece Grenada Guam Guatemala Guinea Guyana Haiti Honduras Hong Kong Hungary Iceland India Indonesia Iran Iraq Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Kosovo Kuwait Kyrgyzstan Laos Latvia Lebanon Lesotho Liberia Libya Liechtenstein Lithuania Luxembourg Macau Madagascar Malawi Malaysia Maldives Mali Malta Mauritania Mauritius Mexico Moldova Monaco Mongolia Montenegro Morocco Mozambique Myanmar Namibia Nepal Netherlands New Zealand Nicaragua Niger Nigeria North Korea North Macedonia Northern Cyprus Norway Oman Pakistan Palestine Panama Papua New Guinea Paraguay Peru Philippines Poland Portugal Puerto Rico Qatar Republic of the Congo Romania Russia Rwanda Saint Lucia Samoa San Marino Saudi Arabia Senegal Serbia Sierra Leone Singapore Slovakia Slovenia Solomon Islands Somalia South Korea South Sudan Spain Sri Lanka Sudan Sweden Switzerland Syria Taiwan Tajikistan Tanzania Thailand Togo Tonga Tunisia Turkey Turkmenistan Uganda UK Ukraine United Arab Emirates Uruguay USA Uzbekistan Vatican City Venezuela Vietnam Western Sahara Yemen Zambia Zimbabwe