Icann stops selling .org-tld after letter from California attorney general
The Icann has postponed the proposed acquisition of .org-tld manager PIR by Ethos Capital by half a month. This after a letter from the attorney general of the state of California, who points out the negative consequences of the sale and threatens to take action.
Top-level domain administrator Icann writes that the assessment period of the acquisition will be extended until May 4 due to the letter from the attorney general. Previously, this period had to run until April 20. De Icann will use the time to read the letter carefully and to re-evaluate the consequences of the sale. The administrator says he listened closely to the community during the process, and demanded more security measures and transparency from the Public Interest Registry.
Last November it was announced that investment company Ethos Capital wants to take over the PIR. The PIR manages the .org tld. In this takeover, this management would fall into the hands of a private company. However, the .org tld is actually used by many foundations. Partly for this reason, the Internet Society NL, among others, previously rejected the takeover.
In his letter, Attorney General Xavier Becerra urges the Icann to block the transfer of .org management to Ethos Capital. The proposed acquisition would raise serious concerns that cannot be ignored, Becerra said. He points out, for example, that the Icann has said several times about the .org TLDs that they are intended for non-commercial purposes. Therefore, these TLDs should remain affordable. With that thought in mind, the management of the TLDs was previously entrusted to the PIR. This organization could safeguard the interests of the tld. Becerra writes that Ethos Capital does not have these interests and that the PIR will no longer have them after the takeover.
Becerra is also dissatisfied with Ethos Capital’s shady dealings and what it has communicated about the purpose of the acquisition. After the acquisition, the PIR will have to pay taxes, repay a large loan and pay investors profits. All things that the organization does not need now and that could have consequences for the .org TLDs, according to Becerra. In addition, Ethos Capital is a new company with no track record, which makes the reliability unclear. That while critical services such as the WHO, the Red Cross and the UN use the .org-tld.
Because the Icann is registered in the state of California, the Attorney General of that US state has authority over the organization. The state is responsible for overseeing non-profit organizations and takeovers like this one. Becerra concludes his letter by stating that he is “willing to take necessary steps to protect Californians and the non-profit community.” According to StateAG.org, attorney generals can take “judicial action” against nonprofits if they see fit.