[ALAC] FW: European Commission comments - ICANN Auction Rules in the new gTLD program

Tue Feb 4 19:39:17 UTC 2014

Dear Colleagues,

please be so kind to find below the European Commission comments
regarding ICANN Auction Rules in the new gTLD program which takes into
account the ALAC's Statement on the Preferential Treatment for Community
Application in String Contention.
https://community.icann.org/x/MlV-Ag

Kind regards,

Olivier MJ Crépin-Leblond
ALAC Chair

-------- Original Message --------
Subject: 	FW: European Commission comments - ICANN Auction Rules in the
new gTLD program
Date: 	Tue, 4 Feb 2014 16:26:37 +0000
From: 	<Camino.MANJON at ec.europa.eu>
To: 	

Dear colleagues,

Please find below the European Commission comments pertaining to the
current ICANN Auction Rules.

Feel free to distribute among your contacts in case you deem it useful.

All the best,

*/_ _/*

*/_Ms Camino Manjon Sierra_/*
European Commission - DG Communication Networks, Content and Technology
Unit D1 (International relations)

Internet Governance; ICANN GAC; EU Registry; Internet and Human Rights

Desk Officer Iran, Syria , Sudan, Iraq & Yemen

Avenue de Beaulieu 25 (5/98) / B-1049 / Brussels / Belgium
*T*: +32-2-29-78797

*M*: +32-488-203-447

Twitter @caminomanjon

Linked-In https://www.linkedin.com/pub/camino-manjon/50/b20/240

*From:*BABA-NAS Youness (CNECT) *On Behalf Of *CORUGEDO STENEBERG Linda
(CNECT)
*Sent:* Tuesday, February 04, 2014 3:59 PM
*To:* comments-new-gtld-auction-rules-16dec13 at icann.org
*Cc:* HARTOG Eddy (CNECT); FORSBERG Lars-Erik (CNECT); MANJON Camino (CNECT)
*Subject:* European Commission comments - ICANN Auction Rules in the new
gTLD program

Dear ICANN,

The European Commission appreciates the opportunity to comment on the
recently updated ICANN’s New gTLD Auction Rules and welcomes ICANN's
interest in the community views expressed in Buenos Aires, including at
the GAC and Public Forum.

Please find below our comments.

Best regards

*Linda CORUGEDO STENEBERG****
**DIRECTOR**
** **
*cid:image001.gif at 01CF20CF.7DAF3FF0*
**European Commission**
*Communications networks, Content and Technologies Directorate-General,
DG CONNECT*
*Cooperation, Directorate D

EU GAC representative*
**
*BU 25 06/24*
*B-1049 Brussels/Belgium*
*+32 22996383

Mobile+32-498996383*
*linda.corugedo-steneberg at ec.europa.eu
<mailto:linda.corugedo-steneberg at ec.europa.eu>

* *

* *

*Public Comment on new gTLD Auction Rules*

*1.       **General comments*

We are deeply concerned about the implications that the Auction Rules in
the gTLD program may have for the protection of public policy interests,
competition, openness and innovation. As a general principle, ICANN
should implement Auction Rules that are consistent with its Bylaws, its
non-for profit status, the objectives of the new gTLD Program and the
Applicant Guidebook to promote competition, diversity, innovation and
consumer choice. As expressed in several comments already submitted
during the comment period, the current Auction Rules are advantageous
for portfolio applicants rather than for small, innovative and community
applicants, which is at odds with the “diversity and innovation” policy
that ICANN seeks to promote. It would be desirable to give these
applicants a more even playing field when they come up against larger
portfolio holders in the contention process. Also, ICANN's auction rules
has not yet proven convincing to the community and deserves being
revisited in light of the input received.

*2.       **Relevant GAC advice*

The European Commission regards positively the explicit mention in the
Auction Rules of the need to "resolve any applicable GAC advice" prior
to the participation in the auction process, as part of the applicant's
"eligibility" criteria, but regrets the lack of reference to "community
applications" or applications with community support, despite the
reiterated GAC advise. In this regard the European Commission seizes
this opportunity to recall the following passages of recent GAC advice:

·         "The GAC advises the board that in those cases where a
community, which is clearly impacted by a set of new gTLD applications
in contention, has expressed a collective and clear opinion on those
applications, such opinion should be duly taken into account, together
with all other relevant information." (Beijing Communique)

·         "The GAC reiterates its advice from the Beijing Communiqué
regarding preferential treatment for all applications which have
demonstrable community support, while noting community concerns over the
high costs for pursuing a Community Objection process as well as over
the high threshold for passing Community Priority Evaluation". (Durban
Communique)

·         "The GAC requests a briefing on the public policy implications
of holding auctions to resolve string contention (including community
applications)." (Buenos Aires Communique).

It is essential that the outcome of the briefing on the public policy
implications of holding auctions requested in the Buenos Aires GAC
Communique and the reflections of the GAC on this particular issue are
fully taken into account when defining the Auction Rules. Particularly,
the auction process _should not_ be initiated until the GAC's briefing
request is duly addressed by the ICANN Board.

* *

*3.       **ALAC – Community applications statement*

It is important to make a specific reference to the At-Large Community
(ALAC) statement of 9.08.2013 on preferential treatment for community
applications in string contention; ALAC stressed that some of the new
gTLD applications that are intended for communities and have wide public
support were not submitted as community applications; those applications
are currently in contention with others not designed for the benefit of
specific communities and driven purely by commercial considerations. In
this regard the European Commission (consistent with its position in the
GAC) fully endorses the GAC view that community applications and
applications with community support should be given preferential
treatment in the new gTLD string contention resolution process, and
remind the clear above mentioned GAC Beijing and Durban Communiques.

*4.       **Security and consumer protection *

Security and consumer protection are fundamental public policy
objectives. Therefore we endorse those comments proposing that the
winning applicant is contractually required to ensure that all security
related gTLDs adopt technologies that improve the level of trust of
Internet users. A "secure" gTLD implies that the resources offered are
truly secure and operating under specific policies that warrant a
dedicated level of security to end users. It is therefore contrary to
this public policy interest that the winning applicant is decided
through an auction process that may simply favour deep pocket applications.

Therefore we will repeat again our concern about the negative impact
that auctions may have for the preservation and enhancement of the
operational stability, reliability, security and global interoperability
of the Internet, as expressed during the Buenos Aires GAC meeting: "The
European Commission believes that in the new gTLD program, ICANN should
aim not just to maintain, but also enhance the level of consumer
protection and confidence in gTLDs. ICANN should therefore take this
social and community responsibility into account in their implementation
plan. It is our understanding that trusted domains such as .safe,
.secure and .security risks being awarded to applicants based only upon
the price they are willing to pay in an auction. We therefore urge
ICANN, in the interest of fostering innovative solutions that enhance
global security, not to allow purely commercial interests to prevail in
the delegation of these domains.

*5.       **Negotiations between applicants prior to the Auction process*

Over and above, there seems not to be any incentive for financially
strong applicants to solve the contention “through voluntary agreement
among the involved applicants”. This solution places an unnecessary
burden on applicants and departs from the artificial assumption that
parties are eager to negotiate.

*6.       **Destination (use) of Auction funds*

We also note the lack of clarity as regards the destination of the
significant funds that ICANN will receive as a result of these auctions;
it is therefore highly recommended that ICANN begins a consultation
process with the community to determine the allocation of the funds
gathered through this process, with a focus on its use for community
support, capacity building and engagement of stakeholders in least
developed nations.

*7.       **Unilateral powers to modify Auction Rules*

ICANN shall not be entitled in its sole discretion to amend these
Auction Rules "for any auction at any time and for any reason prior to
the deposit deadline for that auction". The abovementioned unilateral
power to change the rules currently under negotiation only contributes
to increase applicants' uncertainty. The European Commission fully
supports that "Any proposed changes, at a minimum, should be announced
publicly at least 30 days in advance of any auction, and should be for
good cause based on exigent circumstances". 

We are confident that community input received will allow ICANN to amend
the current draft Auction Rules (version 2013.12.12) in a manner
consistent with ICANN's objectives and fully rooted in the principle of
fairness.