Brace yourself for .com price hikes; US Govt allows Verisign to raise price by 7%

Verisign’s  Cooperative Agreement with the U.S. Government for  managing the .com TLD has received an extension and with it permission for Verisign to negotiate with ICANN to raise the price of .com by 7% in each of the last four years of each six-year .com contract.

Verisign released this statement:

Amendment 35 provides Verisign the pricing flexibility to change its . com Registry Agreement with ICANN to increase wholesale price for . com domain names. Specifically, the flexibility permits Verisign to pursue with ICANN an up to 7% percent increase in the price for . com domain names, in each of the last four years of each six-year period of the . com Registry Agreement. Amendment 35 clarifies that the vertical integration restrictions on Verisign’s ability to own an ICANN-accredited registrar apply only to the . com registry and not to other services offered by Verisign, and the .com Registry Agreement can be amended to reflect that. Amendment 35 also identifies the circumstances that require approval by the DOC for further changes to the .com Registry Agreement, extends the expiration of the Cooperative Agreement to November 30, 2024, and provides for the automatic renewal of the Cooperative Agreement for six-year terms unless the DOC provides Verisign with written notice of non-renewal 120 days prior to the end of the then-current term. Finally, Amendment 35 confirms that Verisign will operate the . com registry in a content neutral manner with a commitment to participate in ICANN processes.

Price hikes can’t begin for two years from now. Verisign will still have to get ICANN’s approval for any price hikes, but ICANN has previously acquiesced. ICANN is likely to grant price hikes in return for a higher cut of the action.