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An ICANN Rejection for .ORG Sale Wouldn't Necessarily Be the End, Opponents Say

An ICANN rejection of the .org deal wouldn't mean "the end of the road," Electronic Frontier Foundation Staff Attorney Cara Gagliano said at a briefing on the proposed sale of Public Interest Registry (PIR) to private equity firm Ethos Capital.…

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Later Thursday, ICANN's board held a special meeting to discuss the transaction. If it nixes it, it's “effectively dead,” Gagliano said at a news conference. If it lets the decision deadline slide, the deal can proceed. Attorney General Xavier Becerra (D) of California, where ICANN is headquartered, recommended that ICANN reject the plan (see 2004160062). Under state law, the AG can seek a court order limiting what can be done with the .org registry contract with ICANN, effectively ending the sale, said EFF Senior Staff Attorney Mitch Stoltz. The AG in Pennsylvania, where PIR is incorporated, has broad power to investigate transactions involving nonprofits and can file objections in the court that must approve the sale, Gagliano said. Asked whether any private groups intend to try to block the sale, Stoltz said: “We're looking into all the options.” Transaction opponents have heard from congressional members and several foreign governments concerned about the matter, Access Now General Counsel Peter Micek told reporters. Most civil society organizations agree they would prefer not to get the U.S. government involved but say it's wholly appropriate for it to scrutinize the proposal under its duty to safeguard the public interest. Human Rights Watch Executive Director Kenneth Roth said China routinely uses economic clout to censor critics, increasingly since COVID-19 emerged. Concerns include fears of “censorship for profit” if the registry suspends domain names at the behest of companies, Stoltz said: If PIR becomes a for-profit corporation with millions of dollars to pay off, there will be an incentive to use censorship to help defray those costs. That could mean shutting down apps and email addresses, he said. The pandemic showed how private equity firms degraded infrastructures people depend on, such as hospitals, by extracting resources, said Access Now Global Campaign Strategist Carolyn Tackett.