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===EC Concerns Over the Full Removal of Vertical Separation===
 
===EC Concerns Over the Full Removal of Vertical Separation===
On June 17, 2011, the Information Society and Media Directorate General of the [[European Commission]] (EC) submitted a non-paper regarding ICANN's proposed full removal of the vertical separation to the ICANN Board. Copies were furnished to [[NTIA]] Assistant Secretary [[Larry Strickling]] and to Assistant Attorney General Christine Varney of the Department of Justice Antitrust Division. EC cited some issues and recommendations which include:<ref>[http://www.icann.org/en/correspondence/eu-to-icann-17jun11-en.pdf Removal of Vertical Separation Between registries and Registrars for New and Existing gTLDs]</ref>
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On June 17, 2011, the Information Society and Media Directorate General of the [[European Commission]] (EC) submitted a non-paper regarding ICANN's proposed full removal of the vertical separation to the ICANN Board. Copies were furnished to [[NTIA]] Assistant Secretary [[Larry Strickling]] and to Assistant Attorney General Christine Varney of the Department of Justice Antitrust Division. The EC cited some issues and recommendations, which include:<ref>[http://www.icann.org/en/correspondence/eu-to-icann-17jun11-en.pdf Removal of Vertical Separation Between registries and Registrars for New and Existing gTLDs]</ref>
 
* Vertical separation provides a balance playing field for competition between registrars. The absence of expert advice to remove it and stakeholders consensus is premature and might result to negative market output for consumers.
 
* Vertical separation provides a balance playing field for competition between registrars. The absence of expert advice to remove it and stakeholders consensus is premature and might result to negative market output for consumers.
 
* Vertical Integration might harm competition. The European Commission cited the CRA International Report on 2008, which emphasized the risk of vertical integration wherein registries may discriminate independent registrars by lowering prices and providing better registry services to their affiliate registrars.  
 
* Vertical Integration might harm competition. The European Commission cited the CRA International Report on 2008, which emphasized the risk of vertical integration wherein registries may discriminate independent registrars by lowering prices and providing better registry services to their affiliate registrars.