The auDA registry, which manages Australia’s national domain .AU, is preparing a package of amendments to local domain market regulations. First, the auDA Policy Review Panel recommends the introduction of opening up .AU to direct second-level registrations, like the UK has over the last several years. Only third-level domains can currently be registered in Australia.
However, domain market players are most concerned about other recommendations that could deal a direct and serious blow to the domain business. Australia currently restricts the registration of domain names for the sole purpose of resale. auDA representatives believe that such registrations increase the cost of doing business and lead to a scarcity of popular domain names.
The registration of domain names for resale is prohibited in .AU. However, there are many loopholes in this rule. For instance, the ban does not cover domain parking, and registrants can argue that by parking their speculative domains, resale is no longer the sole purpose of the registration. However strange this explanation sounds, it officially relieves the domain owner of responsibility.
The new amendments would close this loophole. Registrants with 100 or more domain names will have to prove that they did not purchase them for resale or “warehousing” (that is, parking). If they fail to do so, the domains will be confiscated and listed for registration. According to Domain Incite, there may still be workarounds such as owning matching trademarks or selling shell companies rather than merely the domains. However, this would be very difficult and costly, and therefore would not likely be used by Australian domain investors.
