Commerce Department rejects Web group's bid for long-term contract

The Commerce Department rejected the Internet Corporation for Assigned Names and Numbers' (ICANN's) bid for a long-term contract to continue managing key Internet functions on Monday. 

Instead, the National Telecommunications and Information Administration (NTIA), a Commerce Department agency, granted ICANN a six-month extension on its contract to manage the Internet's address and domain systems.

But the agency rejected the proposals from ICANN and other organizations for a long-term contract, saying the government "received no proposals that met the requirements requested by the global community."

NTIA said it would reissue its request for proposals, inviting ICANN and other applicants to re-apply.

ICANN CEO Rod Beckstrom said NTIA invited his group to meet for a de-briefing on why their proposal was not approved.

ICANN is an international nonprofit organization based in California. Earlier this year, the group began accepting applications for Web domains ending in almost any word or phrase, instead of just traditional endings like ".com" or ".org."

Advertising groups and some government officials criticized the move, warning it could confuse consumers and dilute companies' brands.

The Association of National Advertisers, which has battled ICANN over the domain name expansion, interpreted the Commerce Department's move as "clear message to ICANN that it must seriously address concerns" of its critics.

“This action by NTIA speaks volumes on how serious the problems are with ICANN and its continued need to respond responsibly to the clear demands of the stakeholders it purports to represent,” Bob Liodice, president and CEO, of the Association of National Advertisers, said in a statement.

NTIA declined to comment, pointing to rules that bar the agency from discussing pending contracts. 

---