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EUROPEAN COMMISSION Brussels, 19.2.2020 COM(2020) EUROPEAN COMMISSION Brussels, 19.2.2020 COM(2020) 63 final REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL On the implementation, functioning and effectiveness of the .eu Top-Level Domain from April 2017 to April 2019 EN EN TABLE OF CONTENTS 1. INTRODUCTION ....................................................................................................... 2 2. EXECUTIVE SUMMARY ......................................................................................... 2 3. THE .EU LEGAL FRAMEWORK ............................................................................. 3 3.1. Current framework ............................................................................................ 3 3.2. New framework ................................................................................................. 3 4. THE .EU REGISTRY ................................................................................................. 3 4.1. Financial and contractual compliance ............................................................... 4 5. THE .EU DOMAIN .................................................................................................... 4 5.1. General trends .................................................................................................... 4 5.2. The .eu brand ..................................................................................................... 5 5.3. Marketing and communication .......................................................................... 5 5.4. Multilingualism ................................................................................................. 7 5.5. Impact of the United Kingdom’s intended withdrawal from the EU ................ 7 6. TRUST AND SECURITY .......................................................................................... 8 6.1. Secure domain names ........................................................................................ 8 6.2. Mitigation of abusive registrations .................................................................... 9 6.3. Cooperation in the fight against cybercrime ..................................................... 9 6.4. Alternative Dispute Resolution ....................................................................... 10 6.5. Stability, security and business continuity ...................................................... 10 7. INTERNATIONAL RELATIONS ........................................................................... 10 8. ENVIRONMENTAL IMPACT ................................................................................ 11 9. CONCLUSION ......................................................................................................... 11 1 1. INTRODUCTION This report concerns the .eu ccTLD (country code Top-Level Domain), the internet domain of the European Union, and its variants in other scripts, as administered and managed by the non-profit organisation EURid (European Registry for Internet Domains) acting as the registry of this domain (hereafter ‘.eu Registry’) on the basis of a service concession contract with the Commission. Pursuant to Article 8 of Regulation (EC) No 733/2002 of 22 April 2002 on the implementation of the .eu Top-Level Domain (hereafter ‘.eu Regulation’), the Commission is required to submit a report on the implementation, functioning and effectiveness of the .eu domain to the European Parliament and the Council every two years. This report covers the period from 1 April 2017 to 31 March 2019 (hereafter ‘the period covered’). 2. EXECUTIVE SUMMARY With 3.7 million registered domain names, the .eu domain remained the seventh largest ccTLD worldwide. The growth stagnated during the period covered due to the maturity of the domain name market. The performance of the .eu domain however remained on par with other ccTLDs despite a significant decrease in .eu registrations caused by the United Kingdom’s intended withdrawal from the European Union and the suspension of domain names due to stricter checks on registration data. Confronted with growing competition, the .eu Registry focused increasingly on quality of service and security, rather than on price. This proved successful: the renewal rate of .eu domain names remained high and grew from 78.6 % to 80 % in the period covered in this report. Furthermore, the .eu Registry continued to promote DNSSEC1, a security extension of the DNS (Domain Name System), implemented cybersecurity measures, deployed new initiatives to prevent abusive registrations, and collaborated with law enforcement and other public authorities at both the national and European levels in the fight against illegal activities involving .eu domain names. The .eu Registry maintained a highly resilient and robust technical infrastructure to ensure that the .eu namespace remained available for all internet users. Supporting European linguistic diversity and expanding multilingualism across the .eu domain remained a priority. At the end of the period covered, the expectation was that the .ευ string in Greek script could be launched end of 2019. This milestone would mark the successful completion of efforts to support all non-Latin scripts in the European Union2. In general, the .eu domain continues to function in an effective way, facilitating access to the Digital Single Market in a secure and trustworthy way and allowing Europeans to display their European identity online. 1 Domain Name System Security Extension. 2 The actual launch of the .ευ string in Greek script took place on 14 November 2019, outside the scope of this report. 2 3. THE .EU LEGAL FRAMEWORK 3.1. Current framework The .eu domain was implemented by the .eu Regulation (as amended3), and Regulation (EC) No 874/2004 laying down the public policy rules concerning the implementation and functions of the .eu top-level domain and the principles governing registration (as amended4). 3.2. New framework In 2017, the Commission evaluated the .eu regulatory framework under the Regulatory Fitness and Performance Programme (REFIT) review process and subsequently undertook a revision. Following a public consultation and an Impact Assessment5, and having received positive feedback from the Regulatory Scrutiny Board, the Commission made a legislative proposal to replace the existing .eu Regulation(s). This proposal was ultimately adopted into law as Regulation (EU) 2019/517 of the European Parliament and of the Council on the implementation and functioning of the .eu top level domain and amending and repealing Regulation (EC) No 733/2002 and repealing Commission Regulation (EC) No 874/2004 (‘revised .eu Regulation’). The revised .eu Regulation provides the legal flexibility for the .eu domain to adapt to market changes, modernises its governance structure6, and expands the eligibility criteria for .eu domain names to enable EU citizens to register a domain name, regardless of their place of residence. The revised .eu Regulation entered into force on 18 April 2019. It will apply from 13 October 2022, on which date Regulations 733/2002 and 874/2004 will be repealed, except for the provisions expanding the eligibility criteria, which apply from 19 October 2019. 4. THE .EU REGISTRY Following a tendering process, the non-profit organisation European Registry for Internet Domains (EURid) was selected and awarded a service concession contract in 2004 to become the .eu Registry operator, responsible for the organisation, administration and management of the .eu domain and its variants in other scripts. After a new tendering process, EURid was awarded a second contract in 2014. This contract was extended from 1 April 2019 until 12 October 2022. EURid is an association without lucrative purpose, established under Belgian law with its head office in Brussels. Three companies, owned by EURid, act as regional offices, established in Italy, the Czech Republic and Sweden. EURid’s mission is to "create a trusted .eu space for the end-user in a sustainable way through operational excellence, while offering outstanding quality of service to its accredited registrars". 3 Regulation (EC) No 1137/2008 of the European Parliament and of the Council of 22 October 2008. 4 Regulations of the European Parliament and of the Council; No 1654/2005 of 10 October 2005; No 1255/2007 of 25 October 2007, No 560/2009 of 26 June 2009, and No 516/2015 of 26 March 2015. 5 https://ec.europa.eu/info/law/better-regulation/initiatives/ares-2017-2402460_en. 6 https://ec.europa.eu/digital-single-market/en/news/new-rules-will-boost-eu-governance-and-extend-its- reach. 3 The association EURid has two founding members, DNS Belgium (the .be registry) and the Istituto di Informatica e Telematica (the .it registry), nine other members and a Strategic Board comprised of 13 representatives. A general manager and a management team of eight persons lead the organisation. At the end of the period covered, EURid had 56 full-time employees, working across seven departments and located in its four regional offices. The majority of employees work in the external relations team and the technical department. 4.1. Financial and contractual compliance As an external organisation, EURid manages the .eu domain in an autonomous way. Nevertheless, the Commission closely scrutinises EURid’s financial situation and contractual compliance in line with the provisions of the .eu regulatory framework and the Service Concession Contract. The Commission exercises its supervisory role by reviewing the yearly audited accounts, the half-yearly
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