[ALAC] Comment on proposal for the removal of existing gTLD-Registrar cross-ownership .

[Alan Greenberg]

In light of Evan's comment, have made a change to the statement. Not 
exactly what he suggested, but I think in the same direction.

I note that if a comment is to be submited by the ALAC, even a 
preliminary one, it must be done in the next 22 hours.

Alan
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The ALAC and At-Large have multiple opinions on whether the removal 
of Cross-Ownership Restrictions for gTLD Operators will be to the 
benefit or detriment of users, or in fact, the domain ecosystem. 
There is, however, a unified position that whatever the environment 
is, with certain constraints, there should be a level playing field 
for all gTLD operators.

As such, the ALAC supports the removal of cross-ownership constraints 
for existing gTLD operators.

However, the ALAC does have one major concern with the proposal. The 
option for existing gTLD operators to transition to the new gTLD 
agreement would remove cross-ownership constraints, but it would also 
have a very significant other effect that has not been the subject of 
virtually any public discussion. Specifically, it would remove the 
price caps in the existing agreements, and that is not something that 
should quietly be slipped in without careful analysis.

That transition would be subject to limits related to competition 
issues raised by the removal of the cross-ownership restrictions. The 
document is silent on other results of such a transition, and 
particularly the removal of price caps on existing operators.

The ALAC does not believe that there is sufficient proof at this time 
to indicate that the new gTLD environment will so significantly 
change the gTLD market so that price caps are no longer required for 
the dominant gTLDs. As such, no change driven by the removal of 
cross-ownership restrictions should at the same time remove the price 
caps in the current agreements for dominant gTLDs without substantive 
community involvement.