ICANN's board of directors has decided that Verisign was not at fault when it won the $135 million .web gTLD auction via a secret intermediary. The board ruled that Nu Dot Co, the shell company behind .web, did not violate any rules when it signed a side-deal with Verisign to fund its bid, in exchange for handing over the registry contract after it is signed. ICANN management has been instructed to continue processing NDC's application, which has been held up in legal proceedings since the 2016 auction.



Despite this ruling, second-place bidder Afilias' claims that it broke auction rules by sending texts attempting to resolve the contention set during a 'black out' period, were not addressed. If there are no further legal challenges, NDC could sign its Registry Agreement soon and attempt to transfer it to Verisign. This procedure is not typically controversial when mergers and acquisitions take place. So, if all goes well, .web which has been contested for over 20 years could launch this year.

Afilias, Neustar (then Neulevel), and others had applied for .web gTLD back in 2000 as they viewed it as a potential competitor for .com. However, ICANN instead awarded them .info and .biz respectively while another applicant, Image Online Design, was already running .web in an alternate root. In the 2012 round, attempts at privately resolving the contention set were rejected by NDC, leading to suspicions that it was being secretly bankrolled by a much larger non-applicant company. This suspicion was confirmed when Verisign admitted to funding NDC's $135 million winning bid.

The deal was referred to US competition regulators due to Verisign's market power. The Department of Justice approved the deal in 2018. Afilias filed an Independent Review Process (IRP) complaint with ICANN in 2018, alleging that it broke its bylaws by failing to establish that Verisign was NDC's financial backer before the auction. The Afilias .web application is currently owned by Altanovo, the company formed from all the parts of Afilias that Identity Digital did not acquire when it acquired Afilias.

In the end, the IRP panel ruled for Afilias. It said that ICANN should have at least decided whether the deal was legitimate before contracting with NDC. ICANN has now taken 16 months to make a decision on the matter. The Domain Acquisition Agreement between Verisign and NDC is central to both sides' arguments. ICANN has redacted all references to the document's contents (presumably at Verisign's demand) in its resolution and accompanying rationale.

The board announced that NDC remains the applicant and if NDC enters into a Registry Agreement with ICANN, NDC will become the Registry Operator for .WEB. Whether or not NDC will assign the Registry Agreement to Verisign remains uncertain. Such an assignment does not violate the application process but is necessary for the continued operation of gTLDs. The board also noted that the legal battle had taken years and incurred millions of dollars in fees.

The gTLD registry program was initiated by ICANN to introduce new domain extensions beyond traditional ones like .com and .org. It provides more options for businesses, organizations, and individuals to create memorable and specific domain names for their websites.

Verisign's bid for the .web gTLD registry faced some controversy and legal challenges. However, after a thorough evaluation process, ICANN determined that Verisign met the necessary requirements and was capable of effectively operating the .web registry.

This development is significant as it introduces another major player in the domain name industry and offers potential opportunities for businesses and website owners to establish a strong online presence under the .web extension.

ICANN's decision to greenlight Verisign's bid for the .web gTLD registry means that Verisign will be responsible for managing and overseeing all domain registrations under the .web extension. This includes maintaining the registration database, ensuring the stability and security of the domain, and enforcing the policies and guidelines set by ICANN.

The addition of the .web gTLD provides more choices for website owners to select a domain name that aligns with their brand or industry. It can also help in reducing domain name scarcity as the existing popular extensions like .com and .org become increasingly saturated.

Verisign is a well-established player in the domain name industry, currently managing the .com and .net registries. Their involvement in the operation of the .web gTLD registry brings a wealth of experience and expertise to the table.

While this development is primarily seen as a positive one, there were some concerns and legal disputes surrounding Verisign's bid. Competing applicants and other industry stakeholders raised objections and questioned the fairness of the evaluation process. However, ICANN conducted a comprehensive review and ultimately determined that Verisign met the necessary criteria to operate the .web registry.

The introduction of a new gTLD like .web can have several implications. It can potentially impact search engine optimization (SEO) strategies and online branding efforts as companies consider incorporating the .web extension into their existing domain portfolios. It may also prompt businesses to protect their brand by securing their trademarks under the .web gTLD.

However, there are also concerns about the potential for domain name disputes and increased competition for desirable names. With the launch of a new gTLD, multiple parties might be interested in registering the same or similar domain names, leading to conflicts that need resolution.

The exact timeline and details of the availability and registration process for .web domain names are yet to be announced. Interested parties should stay updated on ICANN's website or consult with domain registrars for further information.