If the dispute is judged under the rule of reason, what might be ICANN"s defense for having a standardized set of registry services that must be used?

Database System Concepts
7th Edition
ISBN:9780078022159
Author:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Publisher:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Chapter1: Introduction
Section: Chapter Questions
Problem 1PE
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The Internet Corporation for Assigned Names and Numbers (ICANN) is a nonprofit entity
organizing Internet domain names. It is governed by a board of directors elected by various
groups with commercial interests in the Internet. One of ICANN's functions is to authorize an
entity as a registry for certain "Top Level Domains" (TLDS). ICANN entered into an agreement
with VeriSign to serve as a registry for the ".com" TLD to provide registry services in
accordance with ICANN's specifications. VeriSign complained that ICANN was restricting the
services that it could make available as a registrar and blocking new services, imposing
unnecessary conditions on those services, and setting prices at which the services were offered.
VeriSign claimed that ICANN's control of the registry services for domain names violated
Section 1 of the Sherman Act. Using the information presented in the chapter, answer the
following questions.
1. Should ICANN's actions be judged under the rule of reason or be deemed a per se
violation of Section 1 of the Sherman Act?
2. Should ICANN's actions be viewed as a horizontal or a vertical restraint of trade?
3. Does it matter that ICANN's leadership is chosen by those with a commercial interest in
the Internet?
4. If the dispute is judged under the rule of reason, what might be ICANN's defense for
having a standardized set of registry services that must be used?
Transcribed Image Text:The Internet Corporation for Assigned Names and Numbers (ICANN) is a nonprofit entity organizing Internet domain names. It is governed by a board of directors elected by various groups with commercial interests in the Internet. One of ICANN's functions is to authorize an entity as a registry for certain "Top Level Domains" (TLDS). ICANN entered into an agreement with VeriSign to serve as a registry for the ".com" TLD to provide registry services in accordance with ICANN's specifications. VeriSign complained that ICANN was restricting the services that it could make available as a registrar and blocking new services, imposing unnecessary conditions on those services, and setting prices at which the services were offered. VeriSign claimed that ICANN's control of the registry services for domain names violated Section 1 of the Sherman Act. Using the information presented in the chapter, answer the following questions. 1. Should ICANN's actions be judged under the rule of reason or be deemed a per se violation of Section 1 of the Sherman Act? 2. Should ICANN's actions be viewed as a horizontal or a vertical restraint of trade? 3. Does it matter that ICANN's leadership is chosen by those with a commercial interest in the Internet? 4. If the dispute is judged under the rule of reason, what might be ICANN's defense for having a standardized set of registry services that must be used?
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