GoDaddy decided to acquire Neustar’s (domain name registry) and now it owns an entire chunk of the domain name market from top to bottom. Neustar provided wholesale services for domain names while GoDaddy was a retailer / a reseller of those domains to the final customer.
The fact that this acquisition was even possible from a monetary / investment standpoint propagates even further my idea that the domain name business model is flawed – after all we don’t usually see the bottom line guys eating the top of the pyramid in other markets…
In order to avoid a conflict of interest they are working on a governance model that will, in theory, keep domain prices reasonable and limit the use of a dominant market position against other players.
GoDaddy is known for its monopolistic, anti-competitive and abuse market practices against customers, suppliers and competitors, how can anyone expect this to go well? Where is ICANN and other country level bodies complaining and blocking the acquisition now?
I guess this is what should be said: A dishonest internet giant decides to consolidate its empire by expanding vertically screwing the consumer even more in the process. Meanwhile it avoids a clash with ICANN by introducing a governance model that will be less effective than ICANN’s multi-stakeholder model. No bureaucrats were hurt in this acquisition.