Translations:GTLD Auctions/27/en

Legality of Private Auctions

In March 2013, the ICANN community and its new gTLD applicants and their representatives responded to news that prominent portfolio new TLD applicant, Uniregistry, had learned from the U.S. Department of Justice that Private gTLD Auctions would be potentially illegal and could be prosecuted as "bid-rigging." The practice in question is illegal in various countries and largely related to government contracts, when bidders for multiple contracts may collude to each submit one high-ball bid for different jobs, thereby guaranteeing that they will each receive the project where they were able to submit the lower bid. The practice inflates the price paid for work obtained via bidding processes. The ICANN process is notably different in the fact that ICANN has expressly noted that it prefers not to receive funds via auction and prefers applicants to reach agreements among themselves. However, it is not up to ICANN whether or not charges are pressed, and the Department of Justice (DOJ) apparently has declined to issue a business review of various private gTLD contention resolution mechanisms. Uniregistry has concluded that because the DOJ declined to issue a business review, that, "no private party, including ICANN, has the authority to grant to any other party exemptions to, or immunity from, the antitrust laws. The decision means that the Department of Justice reserves its right to prosecute and/or seek civil penalties from persons or companies that participate in anti-competitive schemes in violation of applicable antitrust laws."

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