Calif. Scrutiny Delays Decision on Sale of Dot-Org Domain

A decision on whether to approve the proposed $1 billion sale of the organization that regulates nonprofit internet domains has been pushed back two months after California’s attorney general fired off a letter listing 35 questions and requests for unredacted documents about the sale.

The Virginia-based nonprofit Internet Society wants to sell its subsidiary Public Interest Registry, which manages the dot-org domain, to private-equity firm Ethos Capital. The Internet Corporation for Assigned Names and Numbers, or Icann, which will decide whether to approve the proposed sale, posted the California attorney general’s letter on its site Thursday.

Many nonprofit advocates are worried that the new for-profit owners would raise fees and bend to censorship demands.

Nonprofits were expecting a decision on the sale by February 17. The proposal has been controversial since it was announced in November, and late Thursday Icann announced that in response to the attorney general’s letter, it would delay any decision on the matter until April 20. Icann acknowledged the state’s jurisdiction in the case, noting Icann is a California public-benefit nonprofit corporation.

Representatives for Ethos Capital were not immediately available for comment. Rick Cohen, chief communications officer for the National Council of Nonprofits, which has been critical of the proposed sale, hailed the development.

“We’re pleased the attorney general’s office is taking an interest in what’s going on,” said Cohen. “Most of the parties involved here are nonprofits. The best thing for all parties and all organizations with dot-org addresses is that due diligence is done. We see this as just ensuring that charitable assets are protected and managed properly.”