Translations:GTLD Auctions/11/en

Drawbacks of the private auction model include the following:

• Jurisdiction: Enforcement of agreements across jurisdictions could be challenging, particularly if a participant fails to make good on its agreement.
• Funding: According to a CircleID article: "In the case where applicants have numerous strings in contention, a portion of the winning bid will be paid to non-winning applicants that can be used in subsequent auctions in which the winning bidder will be participating in. For example, if Company X is the winning bid for Auction A against Company Y and later, Company X and Company Y are in Auction B, Company Y now has additional funds received from Company X to use in Auction B."
• Participation: All parties within a contention set must agree to participate.
• Failure: If a bid is entered early and the winning bidder fails to pass ICANN's evaluation process, the string could go unclaimed.