RE: [ga] WLS: Dotster posts the definitive arguments against it, and more

[George Kirikos <gkirikos@yahoo.com>]

Hello,

--- jeff@neumanfamily.us wrote:
> viability of such a service.  Please do not associate the gTLD
> position against the Task Force Report as "support for the WLS." 
> They are two completely separate issues.

Are you saying then that the gTLD position is NOT support for the WLS?
If so, you should amend the statement at:

http://www.dnso.org/clubpublic/ga/Arc10/msg02773.html

to remove the line "In light of these, we strongly believe that
VeriSign's proposed amendment to Appendix G be approved by ICANN and
that they be allowed to introduce the Wait List Service."
 
> Second,  while there are some good arguments for and against the WLS
> (like the Dotster Statement), consider the statement given by Bruce
> Tonkin at the Public Forum, which I quote below:  See
<cut>
> The comments have been made that by introducing the WLS service will
> somehow reduce competition. That is not true, because when you
> introduce a WLS service, you have exactly the same competitive
> behavior.  First there is the choice as to what's the optimum time to
> place a WLS on a name. Some might choose to place a WLS on the name
> immediately, so there will be competition the instant the service
> stats. There will be competition to register WLS names. Then there
> will be those that will choose to put a WLS on a name when they
> believe it's about to be deleted. Again, there will be different
> business models in how the best way of the optimum time to apply a
> WLS.

Bruce is VERY confused here. Indeed, he hurts the case of proponents of
WLS by the statement above. He is saying that in the Status Quo, the
competition is for the DOMAIN NAME itself. However, by introducing WLS,
that competition is TRUMPED, and replaced by competition for WLS slots.
It's like suggesting that "competition" would still exist if we
outlawed all forms of transportation except rollerskates -- competition
only in the market for rollerskates is INFERIOR to competition for
cars, trucks, rollerskates, skateboards, buses, taxis and other forms
of transportation in an open market.

Many registrars do NOT want to simply become resellers of WLS slots --
they wish to compete for the names themselves, and thus WLS slots
represent an inferior offering to them, and to consumers who wish to
have a choice.

Consider the following scenario. The Status Quo exists, and SnapNames
approaches VGRS to make a private deal, whereby SnapBack holders get
first dibs on all expiring domain names for the first day. SnapNames
then announces that any registrar can resell SnapBacks for $30 ($24+$6
registration fee). SnapNames negotiates a private deal with VGRS to
split the cash.

Do you not think the above scenario would have consumers and registrars
up in arms? I REALLY want someone to answer that question -- yes or no,
would that deal as described above be allowed?

Now, how do you differentiate the above scenario with the WLS proposal?
The *impact* on the marketplace is IDENTICAL, the only thing that has
changed is that VGRS is the one with the "public face" saying they'll
collect the proceeds from participating Registrars.

If anyone can explain to me how they would logically Reject the
scenario above, yet accept WLS, that would put to rest the WLS debate
completely. I issue that as a challenge to Jeff, Chuck, your lawyers,
lobbyists, and any other proponent of WLS -- your silence will be
telling.

> Third, if you could please show me where in the gTLD Agreements it
> says that the policy supporting organizations can prevent Registry
> Services from being introduced, or where in the Agreements it says
> that the policy making body of ICANN can determine the price of a
> service, I would be interested in seeing that.  

I'd be happy to. :) In good faith, proponents of competition and
consumer choice (i.e. opponents of WLS) do not fear answering any
questions, but hope that in good faith you answer a few of ours, such
as the one I posed above. Also, at the bottom of:

http://www.dnso.org/clubpublic/ga/Arc10/msg02792.html

I asked for examples of monopolistic WLS-like services for resource
allocation anywhere in the universe, and I'm still waiting for your
answer, or an answer from anyone! Surely SnapNames, VGRS, their
lawyers, lobbyists, or a single proponent of WLS can come up with some
examples to share with us ---- your silence on these points is
deafening.

The places in the ICANN contracts that allow our consideration of the
WLS proposal were previously noted by myself at:

http://www.dnso.org/clubpublic/ga/Arc10/msg02237.html

I think you'll find that the affected registrars will not hesitate to
enforce ICANN's legal obligations as stated in that message.

There's also the entire issue of anti-trust from the consumer angle
(also from the registrar angle, but they'd represent a separate class).
Given the legal precedents mentioned at:

http://www.dnso.org/clubpublic/ga/Arc10/msg02373.html

and the treble (triple!) damages faced by defendants, ICANN/VGRS, etc.
should be wary of the risk they face should they be found in
contravention of the law. For a primer on anti-trust, start here:

http://www.usdoj.gov/atr/overview.html

"The antitrust laws apply to virtually all industries and to every
level of business, including manufacturing, transportation,
distribution, and marketing. They prohibit a variety of practices that
restrain trade, such as price-fixing conspiracies, corporate mergers
likely to reduce the competitive vigor of particular markets, and
***predatory acts designed to achieve or maintain monopoly power.***"

"The historic goal of the antitrust laws is to protect economic freedom
and opportunity by promoting competition in the marketplace.
Competition in a free market benefits American consumers through
***lower prices***, better quality and ***greater choice***.
Competition provides businesses the opportunity to compete on price and
quality, in an open market and on a level playing field, unhampered by
anticompetitive restraints"

I could not say it better myself. :) (*** = emphasis added)

Sincerely,

George Kirikos
http://www.kirikos.com/

P.S. For the DoJ reading this, the relevant post by Dotster, an
innocent market participant who'd be negatively affected by the
imposition of the WLS regime, their original post is here:

http://www.dnso.org/clubpublic/nc-transfer/Arc00/msg00341.html

(see the Word .doc file at the bottom)


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