RE: [registrars] Regarding taxes

["Margie Milam" <Margie.Milam@xxxxxxxxxxxxxxx>]

Bob is correct that negative margins can amount to predatory pricing which would be a concern to govermental agencies that are concerned with anti-trust enforcement.   
Icann policy making should not be concerned about the effect on any registrars that operate under negative margin as this is anticompetitive.
 
Margie

-----Original Message-----
From: Robert F. Connelly [mailto:rconnell@xxxxxxxxxxxxx]
Sent: Wednesday, May 26, 2004 6:44 AM
To: Registrars Constituency
Subject: Re: [registrars] Regarding taxes


At 01:58 AM 5/26/2004, Bruce Tonkin wrote:


I don't disagree that the increase in ICANN fees will affect a small
registrar, but it should be understood that the increase in transaction
fee (from 18 cents to 25 cents) significantly affects large registrars
that sell a large volume of names at a small or even negative margin. 


Dear Bruce:  Negative margins are exactly what many of us are trying to oppose.  It borders on or is in fact a case of "predatory_pricing", something very much of concern to the anti-trust departments of our respective governments.

Regards, BobC