Domain prices for .com might rise by 7 percent this year. They have been static for the last eight years, standing at $7.85 since 2012. Customers might not have seen the underlying charges since they were charged more or less by a registrar. However, in the end, this was the price the registrars had to pay per registration.
The proposal for an increase in domain prices was submitted in 2018. However, it only came to light now because Internet Corporation for Assigned Names and Numbers (ICANN), a nonprofit organization responsible for coordinating the maintenance and procedures of several databases, is close to granting the final approval for the price hikes.
Based on the proposal, the prices will rise to nearly $13.50 per domain over the next 10 years, since the prices will rise 7 percent per year for most of the next decade.
Why is The Price Increasing?
Verisign, an American company that operates a diverse array of network infrastructure, recently signed a deal with the US government, which will allow the company to gradually increase domain prices but will be required to pause price increases during 2024 and 2025.
It is important to understand that the price hikes do not come from ICANN. They are actually a result of Verisign reaching an agreement with the Commerce Department, which has oversight of .com domains.
In a recent blogpost, ICANN’s CEO Göran Marby said that “the organization is not a price regulator and defers to the U.S. Department of Commerce and the U.S. Department of Justice for the regulation of pricing for .COM registry services.”
Some of the domain name registrars like Namecheap are against the price hikes, but since the deal has almost reached the final stages, they will have to abide by it.