Abion / Blog / ICANN Ends Private Auctions for gTLDs
Domain Names

ICANN has announced that private auctions will no longer be allowed — which were previously used to resolve situations where multiple companies applied for the same gTLD. 

This is a key change in the upcoming round of applications for new generic top-level domains (gTLDs), the extensions found at the end of website addresses, such as ".com" or ".org."

Background: What Are Private Auctions?

In the past, if multiple companies applied for the same gTLD (for example, if two companies wanted ".shop"), ICANN allowed several ways to resolve the conflict. One option was an Auction of Last Resort, where the company that bid the highest got the domain, and the money went to ICANN.

ICANN Ends Private Auctions for gTLDs

However, companies also used private auctions, where losing bidders would receive a share of the winning bid, which created an incentive for companies to apply for domains they didn't necessarily want just to profit from the auction process. This led to concerns about fairness and "gaming the system."

What’s Changing in ICANN’s New gTLD Program?

In the upcoming round, ICANN has made three important changes:

  • No Private Auctions: Private auctions are no longer allowed. This should reduce the incentive for companies to apply for domains they don’t really want.
  • Alternate Strings: Companies applying for a gTLD can now submit alternative options. If their first choice conflicts with another applicant's, they can switch to a different name, potentially avoiding an auction altogether.
  • Same Auction Method: If a conflict does need to be resolved by auction, ICANN will continue using the "ascending clock second-price auction" method. This means the highest bidder wins, but they only pay the amount of the second-highest bid, which is seen as a fairer system.

"ICANN’s decision to end private auctions is a positive change since it addresses concerns about fairness and reduces the risk of speculative applications as well as promoting a more transparent gTLD process. While discussions around this decision continue, we, as a registrar and an active part of the ICANN community, support these updates and are committed to guiding our clients through the evolving gTLD landscape."

- Jeanett Tesfaledet, Registrar Compliance Manager

Why Does This Matter?

The ban on private auctions is meant to make for a fairer and more transparent process. It will also discourage companies from playing the system and could lead to fewer unnecessary conflicts over gTLDs. In addition, companies with smaller budgets may have a better chance of securing a gTLD they really want, without competing against large companies just trying to profit from private auctions.

This change is part of ICANN’s efforts to refine the gTLD program ahead of the next application round in 2026. Removing private auctions should reduce uncertainty and allow the remaining work to proceed smoothly.

Jeanett.Tesfaledet

AUTHOR

Jeanett Tesfaledet

Registrar Compliance Manager

Contact me

Share blog

Need Help Registering a Domain?

Get in touch with us today for expert assistance!

Related read

Insights Microsoft Defense Report

Key Takeaways from the “Microsoft Digital Defense Report 2024”

Domain Management
Websecurity
English
DDOS attack
Domain Hijacking
Phishing
21, November 2024
From the rise of sophisticated ransomware to the increasing use of AI by both attackers and defenders, the report...
Domain NIS2

Understanding NIS2 – the EU’s New Cybersecurity Directive

Domain Management
English
8, November 2024
European Union policymakers are introducing more legislation to heighten cybersecurity standards and curb online f...

This website uses cookies

Cookies ("cookies") consist of small text files. The text files contain data which is stored on your device. To be able to place some type of cookies we need your consent. We at Abion AB, corporate identity number 556633-6169 use these types of cookies. To read more about which cookies we use and storage duration, click here to get to our cookiepolicy.

Manage your cookie-settings

Necessary cookies

Necessary cookies are cookies that need to be placed for fundamental functions on the website to work. Fundamental functions are for instance cookies that are needed for you to use menus and navigate the website.

Functional cookies

Functional cookies need to be placed for the website to perform in the way that you expect. For instance to remember which language you prefer, to know if you are logged in, to keep the website secure, remember login credentials or to enable sorting of products on the website in the way that you prefer.

Statistical cookies

To know how you interact with the website we place cookies to collect statistics. These cookies anonymize personal data.

Ad measurement cookies

To be able to provide a better service and experience we place cookies to tailor marketing for you. Another purpose for this placement is to market products or services to you, give tailored offers or market and give recommendations on new concepts based on what you have bought from us previously.

Ad measurement user cookies

In order to show relevant ads we place cookies to tailor ads for you

Personalized ads cookies

To show relevant and personal ads we place cookies to provide unique offers that are tailored to your user data