Scope

The evaluation covered the.eu legal framework¹ across the European Union (EU). 

Evaluation findings

The .eu Regulations have been efficient in making .eu domains widely available throughout the EU, at a low cost for the consumers, providing an identifiable link between the top-level domain (TLD) and the European Union. They have also been effective in supporting ecommerce and the internal market with the .eu TLD being particular appealing for business use.

However, the evaluation also found that the the .eu Regulations reflect the domain name market as it was in 2002-2004, flagging early signs of relative decline in the .eu TLD’s performance. With detailed provisions, which are time-consuming and costly to change, the evaluation deemed the .eu TLD unable to implement operational or technical changes as swiftly as the market demanded and as its competitors were able to.

While the objectives of the .eu Regulations continued to be relevant to EU citizens, the evaluation found that the .eu Regulations were no longer in step with international best practices (for example, the rules for registration (‘eligibility criteria’) restricted the availability of .eu domains to registrants located in the EU and EEA).

The evaluation also found that the regulatory framework for the .eu TLD was no longer coherent with its objectives. Most country code TLDs within the EU are not subject to the same regulatory burdens as the .eu TLD, which risked placing the .eu Registry at a competitive disadvantage amid toughening market conditions. Moreover, the .eu Regulations predated and therefore did not reference subsequent EU strategies and legislation which could not have been foreseen when the .eu Regulations were first developed, such as the Digital Single Market, and in particular its focus on start-ups and the NIS Directive.

Therefore, while the evaluation found that the .eu domain has established itself as a significant contributor to e-commerce, the single market and the EU identity, it deemed necessary to modernise its underlying legal framework. To fulfil its potential as a trusted innovative namespace for the European Union, the .eu top level domain must be enabled to compete on an equal footing in the market, while supporting governance and operations that adhere to the highest standards, EU values and international best practices.

Estimated savings and benefits

According to the findings of the evaluation,the .eu Regulations have been efficient in making .eu domains widely available throughout the EU, at a low cost for the consumers, providing an identifiable link between the TLD and the European Union. However, their rigid requirements are causing inefficiencies, which place the .eu TLD at a competitive disadvantage in the market, reducing the possible benefits in terms of supporting e-commerce or the single market.

¹ Regulation (EC) No 733/2002 of the European Parliament and of the Council of 22 April 2002 on the implementation of the .eu Top Level Domain (OJ L 113, 30.4.2002, p.1) and Commission Regulation (EC) No 874/2004 of 28 April 2004 laying down public policy rules concerning the implementation and functions of the .eu Top Level Domain and the principles governing registration (OJ L 162, 30.4.2004, p.40)

Which objective(s) will the Commission pursue?

The key objectives of the Commission proposal were:

• remove outdated legal and administrative requirements, while ensuring that the new regulatory framework is future-proof and allows the .eu TLD to adapt to rapid changes of the top-level domain market and the dynamic digital landscape;

• continue incorporating and promoting EU priorities in the online world, ensuring a governance structure which reflects both technical and governance best practices, serving the EU public interest;

• extend the current eligibility criteria for registration of .eu domains to allow Union citizens to register a .eu domain name, independently of their place of residence;

• lift the strict prohibitions on vertical integration while providing clear provisions safeguarding the application of the rules of fair competition in accordance with the Treaty on the Functioning of the European Union.

Estimated savings and benefits

The proposal aims to remove outdated legal / administrative requirements and create futureproof rules for the .eu TLD. By consequence, it contains only the principles, which the functioning of the .eu TLD must abide by, while all unnecessary and detailed administrative and technical requirements will either be removed if they are outdated, or detailed in the contract to be concluded between the European Commission and the appointed Registry operator. This will enable the .eu TLD to adapt to rapid changes in the TLD market and dynamic digital landscape.

Simplification of the legal framework and introduction of a new governance structure is expected to bring the following savings:

• Compliance costs for the appointed Registry operator to be reduced;

• Oversight costs for the Commission to be reduced following the establishment of the .eu Multistakeholder Council, which would facilitate some of the oversight tasks the Commission is currently performing.

Outcome of Legislative Procedure

Compared to the original Commission proposal, the adopted Regulation:

• clarifies that the legal framework for the .eu top level domain respects the fundamental rights and observes the principles recognised in the Charter of Fundamental Rights.

• limits the possibility to designate the Registry only from among non-profit organisations, reverting to the status quo in the current Regulation

• clarifies the provisions around the now called .eu multistakeholder advisory group.

• provides for additional safeguards against the abusive registration of .eu domain names.

• applies more swiftly – 6 months after the entry into force of the new Regulation – a new eligibility criterion which will allow all EU citizens to register a .eu domain, regardless of where they live, be it inside or outside the EU.