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eco Association – Names & Numbers Forum presents discussion paper
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Changes unavoidable for some Top Level Domains
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Experts define options for action
The Brexit referendum is likely to have a substantial impact on the Domains industry. This is the essence of the new discussion paper “Brexit – Challenges for the Domain Industry?”, produced by eco – Association of the Internet Industry e. V.. The paper is available for download at https://numbers.eco.de/downloads.html.
Britons and providers with British customers affected
The rules for the allocation of domain names with endings like “.eu”, “.it” or “.fr” stipulate that only companies and individuals based in the European Union or from the European Economic Area are permitted to own such domains. After Brexit, several hundred thousand domain registrations that were undertaken from Great Britain will no longer fulfill these requirements. The fate of these domain registrations is currently uncertain. Not only Britons themselves will be affected, but also domain providers in other European countries who have customers based in Great Britain.
Brexit impact already perceptible today
Although the implementation of Brexit is probably still several years away, its impact on the domains industry is already perceptible. Domains providers are already noticing changes in their customers’ registration behavior, visible in the sinking registration numbers. The registries are also receiving requests for information from customers and other interested parties.
What is clear is that registries will need to address the issue at the national level – or, in the case of “.eu”, in the European Commission – through changes in their registration rules or through public and binding announcements.
Among eco’s 900 member companies are around 150 registries and registrars – companies from the domains industry. These companies have enormous expertise in the area, and this is being channeled by eco and is to be disseminated. While eco has no direct influence over the handling of the changes caused by Brexit, at least in this way the committees and individuals who will be making these decisions have access to all the options available.
Five options to choose from
In the paper, eco presents five options for how the problem can be addressed; here, it has been expressly taken into consideration that a bilateral agreement between the EU and Great Britain could potentially be made that includes domain registrations and that prevents an interim depletion in domain registrations.
Lack of clarity about long-term contracts
Alongside the problems mentioned above, many very practical questions arise with regard to long-term domain and hosting contracts that were concluded under EU law, but in future will need to be handled as contracts between an EU state and a third state. What’s more, Great Britain will almost certainly cease to be part of the SEPA (Single European Payments Area) after Brexit, which means, for example, that payment transfers will become more difficult and more expensive.
Lawyer Thomas Rickert, Leader of the eco Names & Numbers Forum, explains: “With our paper and the opening of a discussion forum, we would like to contribute to making the impact of Brexit clear and understandable for companies and customers, as well as – on the basis of expert knowledge – contributing towards the rapid creation of legal certainty for all those involved.”
