Network Solutions Defends Holding Domains Hostage – Still apparently a security ‘feature’, not anti-competitive endeavor… – dslreports.com
If you recall, back in January Network Solutions found themselves under fire for purchasing and holding certain domains for five days after they’re searched for at the company’s website. The tactic allowed the provider to keep shoppers from doing business elsewhere. At the time, Jonathon Nevett, Vice President of Policy at Network Solutions, issued a statement saying that the practice wasn’t anti-competitive — it was a security feature:
…we have implemented a security measure to protect our customers. The measure will kick in when a customer searches for an available domain name at our website, but decides not to purchase the name immediately after conducting the search…You are correct that we are trying to take an arrow out of the quiver of the tasters. As you know, domain tasters are the largest Front Runners. […] Some folks may not agree with our approach, but we are trying to prevent this malicious activity from impacting our customers.
ICANN’s Security and Stability Advisory Committee (SSAC) recently investigated a number of front-running complaints, and found more often than not, the complainants generally misundertsood the domain business. While SSAC did not formally investigate Network Solutions, they did have a chat with Nevett (see this transcript, about halfway down), who continues to defend the practice as their response to front-running.