A Path Forward: Contention Set Resolution for the New gTLD Program: Next RoundTripti Sinha

During its workshop in Los Angeles (6-8 September 2024), the ICANN Board spent considerable time discussing the resolution of contention sets in the New gTLD Program: Next Round (Next Round). The Board focused its discussion on three items: (1) the extent to which applicants should be able to make private agreements to resolve contention; (2) whether, and if so how, to provide less well-resourced applicants a chance to obtain a string if they are in a contention set; and (3) whether to rely on ICANN auctions using the ascending clock second-price methodology to resolve contention, or to adopt an alternate methodology such as a sealed-bid second-price auction, or even a raffle.

Private resolution of contention sets was encouraged during the 2012 round of the New gTLD Program (2012 Round). The Board has long since documented its concerns over private resolutions, asking the SubPro PDP WG in its correspondence on 30 September 2020 "to provide a rationale why the resolution of contention sets should not be conducted in a way such that any net proceeds would benefit the global Internet community rather than other competing applicants." Concerns also transpired from advice that the Board has since received; see the Governmental Advisory Committee's ICANN77 Washington Communiqué and the At-Large Advisory Committee's advice recommendation from 21 June 2024. Similarly, during the recent community discussion on the resolution of contention sets, several community members noted that private resolutions should be prohibited during the Next Round.

Additionally, in its ICANN77 Washington Communiqué, the GAC issued advice to improve the chances of less well-resourced applicants to prevail if they find themselves in a contention set. Participants in the community discussion also raised the need for such a mechanism.

Finally, the ALAC advised the Board to use the Vickrey auction method to resolve contention, and the GAC to consider "drawing lots." In the community discussion, participants examined the Vickery method and also explored the possibility of using a raffle to resolve contention.

Considering this diverse input, as well as ICANN's responsibility to act in the global public interest, the Board decided that there must be a holistic approach to contention resolution in the Next Round with the following outcome:

1. No private resolution: Private resolution of contention sets will not be permitted during the Next Round.

2. Ability to submit alternate strings: Applicants should be permitted to submit one or more alternate strings at the time of application submission. During a short window after reveal day, an applicant could then switch to an alternate string - if their initial string is identical to another applied-for string - without creating an existing or forming a new contention set.

3. Continue to use 2012 ascending clock second-price auction method: The Board agrees that auctions are a tested and effective method to allocate scarce resources and that introducing a raffle system is not preferable over the auction approach (see also "Economic Case for Auctions in New gTLDs.") The Board is not aware of any specific concerns around the 2012 ascending clock second-price method that would warrant a change to the auction methodology.

For details on the Board's deliberation and ICANN's approach to contention resolution and rationale, please refer to my 13 September 2024 correspondence to Greg DiBiase, Chair of the Generic Names Supporting Organization Council.