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VeriSign Loses First Round Of Antitrust Battle With ICANN

by Glen Shapiro, LawAndTax-News.com, New York

26 May 2004

Domain name registrar, VeriSign has suffered a defeat in its antitrust dispute with the Internet Corporation for Assigned Names and Numbers (ICANN), it emerged this week.

Verisign launched the action against ICANN in February, after the latter organisation argued that VeriSign's Site Finder service (which redicrected those who mis-typed .com or .net domain names to paid search listings) disrupted internet use for many by causing anti-spam filters to malfunction.

Ruling last Tuesday in a California court, Judge A. Howard Matz observed that:

"Its (VeriSign's) complaint seems to be based on the unstated assumption that ICANN has a duty to help it compete more effectively. Verisign has not alleged anything more than injury to its own business and therefore, does not have antitrust standing."

According to reports, VeriSign now has until June 7 to file an amended complaint. If it does not do so, its case against ICANN will be dismissed.

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