52001PC0535

Amended proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL ON THE IMPLEMENTATION OF THE INTERNET TOP LEVEL DOMAIN ".EU" (presented by the Commission pursuant to Article 250 (2) of the EC Treaty)

Background

Transmission of the Proposals to the Council and the European Parliament (COM(2000)827 final - 2000/0328/COD)) in accordance with article 175(1) of the Treaty :12 December 2000

Opinion of the Economic and Social Committee :28 March 2001

Opinion of the Committee of Regions :No opinion

Opinion of the European Parliament - first reading :4 July 2001

Objective of the Commission proposal

The regulation implementing an Internet Top Level Domain ".EU" aims to provide undertakings, organisations and individuals in Europe with a new domain for registration of names and to promote easier access to Internet networks. The regulation sets out the conditions for the implementation of such a Top Level Domain and determines the characteristics to be met and the obligations to observed by the Registry which will be designated to organise, administer and manage the .EU Top Level Domain. The regulation also establishes the general policy framework.

Commission opinion on the amendments adopted by the Parliament

Amendments accepted by the Commission

On the 39 amendments adopted by the European Parliament, 23 amendments are accepted by the Commission namely amendments 1, 2, 3, 4, 5, 7, 8, 10, 11, 12, 16, 17, 19, 21, 22, 25, 26, 28, 31, 35, 38, 39 and 40.

Amendment 1 proposing a new recital stating that the establishment of the .EU country code Top Level Domain (ccTLD) will strengthen the EU image on global information networks, and provide added value in respect of existing ccTLDS.

Amendment 2 proposing a reference to the Internet Corporation for Assigned Names and Numbers (ICANN), and its current responsibility for the delegation of codes for Top Level domains. It also includes a reference to the Council Resolution of 3 October 2000 on the implementation of the principles adopted by the Governmental Advisory Committee, and the need for the Registry to enter into a contract with ICANN.

Amendment 3 referring to the "Whois"-type databases and their role in boosting users confidence. The "Whois"-type database is a standard feature of the Domain Name System and provides Internet users with basic contact information in relation with the domain name registrant.

Amendment 4 referring to international practice of Internet management based on the principles of non-interference, self-management and self-regulation in so far as these principles would apply to management issues not addressed by this Regulation.

Amendment 5 referring to Community law on personal data protection and principles relating to privacy and protection of personal data.

Amendment 7 is acceptable as it provides that the Registry will not be empowered to issue sub-domain registrations using Member State domain identities. The Commission agrees that it would be inappropriate for second level domains to include combinations of letters which appear to refer to individual Member States and could be confusing.

Amendment 8 which explains that reference to "interested parties" in the regulation should cover undertakings, organisations, natural persons and public authorities.

Amendment 10 (article 1) stipulating that the regulation shall apply without prejudice to arrangements in Member States regarding country-code Top Level Domains. Such domains are not covered by the regulation.

Amendment 11 (article 2) extending the definition of the Registry's activities by adding specific reference to the public query services (otherwise known as the "Whois" queries) and the operation of the registry of domain names.

Amendment 12 (article 2) providing a definition of a "Registrar".

Amendment 16 (article 2) stipulating that the Registry shall enter into a contract to ensure the delegation of the .EU Top Level Domain code with prior consent of the Commission clarifies the text proposed by the Commission.

Amendment 17 (article 2) stipulating that the Registry shall not act as a Registrar.

Amendment 19 (article 3) requiring the Registry to observe, in addition to the rules, policies and procedures of the Regulation, the contracts referred to in Article 2 and to observe transparent and non-discriminatory procedures.

Amendment 21 (article 3) proposing that the Registry shall administer and manage the .EU Top Level Domain in the general interest.

Amendment 22 (article 3) proposing the deletion of the provision requiring that the Registry observe applicable public procurement rules. The addition deletion of the reference to transparent and non-discriminatory procedures is ensuring consistency with amendment 19.

Amendments 25, 26, 28 (article 3) proposing explicit references to the Registry's responsibilities for accrediting .EU Registrars, ensuring the integrity of the database and for the suspension, cancellation and transfer of registrations which are normal functions of a Registry.

Amendment 31 (article 3) proposing that the Registry shall determine registration policy in areas not covered by general policy rules. The Commission agrees that the Registry should be primarily responsible for the definition of Registry policy with the exception of public policy rules as stipulated in article 4.

Amendment 35 (article 4) including a reference to the need for the extra-judicial settlement of conflicts policy to "promptly" resolve disputes, and that this procedure should be either free of charge or on no more than a cost-recovery basis.

Amendment 38 (article 4) addressing the question of a policy for domain names which have become "bona vacantia". The reference to "national best practice" in this amendment should however be replaced by a reference to "best practices" since best practices in this area exists as well on national as on international level.

Amendment 39 (article 5) is a precision of the proposal of the Commission as it provides, - in relation to the committee assisting the Commission-, that until the entry into force of the directive on a common regulatory framework for electronic communications networks and services, the Commission should be assisted by the committee established under Council directive 90/387/EEC on the establishment of the internal market for telecommunications services through the implementation of open network provision [1].

[1] OJ L 192, 24.7.1990, p. 1.

Amendment 40 (article 6) relating to the submission of regular reports to the Parliament and the Council on the operation of the .EU Top Level Domain.

Amendments accepted in part or in principle by the Commission

Amendment 9 and 13

As regards the call for expression of interest and its publication in the Official Journal of the European Communities, the Commission can accept in principle amendment 9 and amendment 13 in so far as one reference only to the call for expression of interest is made as outlined in amendment 13 and deleting this reference in amendment 9. The Commission is fully committed to the need for transparency in the procedure and supports a call for expressions of interest in the OJ. That said, the regulation itself will be published in the OJ, and additional publicity could be more effectively achieved through alternative methods of publication (such as through the Commission's official web-site).

The Commission can accept part of amendment 9 and more specifically the first sentence "The objective of this Regulation is to implement the .EU Top Level domain (TLD) within the European Community" and the reference at the end of the amendment to the "general" policy framework in Article 1.

Amendment 14

The Commission agrees with the principle that the activities of the Registry should not result in costs to the Commission and can therefore accept in principle the amendment subject to the following rewording : "All cost related to the organisation, administration and management of the .EU Top Level Domain shall be supported exclusively by the Registry". This rewording is necessary to avoid the potential confusion which could be generated by the reference to "services provided by the Commission", and in order to clarify the purpose of this amendment.

Amendment 18

While the Commission agrees with the need for the Registry to consult widely with the European Internet community, it is unclear how a Policy Advisory Board established by this regulation would interact with the role of the Commission and the Member States in the area of public policies, and with the Registry's commitment to consult under article 3 with interested parties. In addition it is questionable whether such a Policy Advisory Body would be consistent with the procedures for the exercise of implementing powers confer to the Commission. For this reason, the Commission can accept the principle of consultation by the Registry of an advisory body but would subject its acceptance to a reformulation of the amendment, as an addition to amendment 8, as follows : "The Registry could establish an advisory body to organise such consultation".

Amendment 20

The Commission agrees that the Registry should identify and apply best practices in organising, administering and managing the .EU Top Level Domain, wherever they occur, but not to restrict such an approach to the national level. For this reason, the Commission can accept the following rewording : "Taking account of best practices, the Registry shall:".

Amendment 29

The Commission has already accepted Amendment 35 referring to the policy and procedure on an extra-judicial settlement of conflicts to resolve disputes between domain names and intellectual property rights promptly and free of charge or on no more than a cost-recovery basis and therefore accepts the principle of amendment 29 but is of the opinion that amendment 35 covers this principle. The Commission supports the implementation of the policy by the Registry and could therefore accept a rewording of this amendment as follows : "implement the extra-judicial settlement of conflicts policy and a procedure to promptly resolve disputes between domain name holders regarding rights relating to names including intellectual property rights as well as disputes in relation to individual decisions by the Registry. This policy shall be adopted according to Article 4 and take into consideration the recommendations of the World Intellectual Property Organisation (WIPO). The policy shall provide adequate procedural guaranties for the parties concerned and shall apply without prejudice to any court proceeding.

Amendments 30 and 36

The Commission agrees that a code of conduct could be a useful element of a registration policy, and can accept a reference to codes of conduct in principle, but would reformulate the amendment as an addition to amendment 4 and as follows : "The implementation of the .EU Top Level Domain should be achieved taking into consideration best practices and be supported by voluntary guidelines or codes of conduct where appropriate."

Amendment 32

The Commission agree that a first-come, first-served approach is an approach the Registry should observe in principle, with the exception of cases covered by the public policy rules set out in article 4. The Commission can accept a reference to such policy as an addition to Article 3.3 of its proposal as follows : "Unless otherwise stipulated in this Regulation or in the public policy rules, registrations will be effected on a first come, first served basis."

The Commission accepts the need for an implementation in a phased manner of the registration of domain names of holders with prior rights recognised or established by national and/or Community law and can therefore accept part of Amendment 32 subject to the following rewording : "The registration of domain names by the Registry may be implemented in a phased manner to ensure appropriate temporary opportunities for the holders of prior rights recognised or established by national and/or Community law." The extent to which holders of prior rights recognised by national and/or Community law and public bodies are offered a possibility of a temporary registration period is to be determined as part of the policy on speculative and abusive registration of domain names.

The amendment also proposes that registration shall confer no legal rights on the registrant and that the Registry shall incur no legal liability in relation to names registered in breach of the rights of a third party. The Commission feels however, that the registration of a name should at least confer rights of use to the registrant, and that liability of the registry will already be covered by applicable law or by the contractual framework.

Amended proposal

Having regard to Article 250 (2) of the EC Treaty, the Commission modifies its proposals as indicated above.