The Impact of Registro.br Auctions on the Domain Market: Price Inflation and Rules That Favor

Maiquel Gomes

The internet domain market is a vital ecosystem for the digital presence of businesses, entrepreneurs, and individuals. In Brazil, Registro.br — managed by the Brazilian Network Information Center (NIC.br) — oversees the ".br" domain namespace. A practice that has sparked ongoing debate is the auction model for expired domains, which allows for speculative participation and contributes to price inflation. This article presents a factual analysis of how the current rules favor certain actors, limiting broader and fair

The Domain Release and Auction Process at Registro.br

When a “.br” domain expires, is canceled, or not renewed, it enters a release process managed by Registro.br. The domain becomes available for registration during a 7-day window, where interested parties can submit requests. However, the first request is not made publicly visible, making it impossible for others to know if a domain is already being claimed.

If a second applicant submits a request for the same domain, the entire process is automatically canceled and restarted. This cancellation cycle can repeat up to six times. On the seventh round, if there are multiple interested parties, the domain is sent to auction.

Although these auctions are described as "transparent," visibility is limited to registered participants, who can see real-time bids. Unlike public auctions — such as judicial or governmental auctions — Registro.br’s auctions are not open to general public scrutiny, restricting transparency about bidding dynamics and final values.

Anyone with a registered account, individual or business, may participate. The number of allowed applications per release process ranges from 3 to 200, depending on the applicant’s profile, based on domain ownership history and payment records.

The Role of Large Domain Holders in Auctions

Entities and individuals with large domain portfolios are able to participate in every monthly auction — which, according to public data, rarely exceed 100 per month. The generous application cap of 200 per process clearly benefits those with the technical and financial capacity to monitor and engage at scale.

This setup is advantageous to speculators (also known as “domainers”) who buy domains with the intent to resell them at a profit. The larger the portfolio, the greater the capacity to dominate multiple release processes and gain structural advantage over newcomers.

Moreover, the recurring 7-day window and up to six cancellation cycles allow these players to closely track and act quickly on domain opportunities, while smaller players face uncertainty and delays.

Domain Market Price Inflation

Registro.br auctions frequently produce high bids, especially for premium domains, which can fetch from R$ 10,000 to well over R$ 200,000. One striking example is “pneus.com.br,” reportedly sold for R$ 220,000 in a public auction.

While such cases are not the norm, they do impact the secondary market, where domain names are often resold for even higher prices. For example, a generic domain acquired for R$ 50,000 at auction may later be listed for resale at R$ 100,000 or more.

This speculative inflation raises the cost of entering the digital market, disproportionately affecting small businesses, startups, and individuals seeking affordable domain names for their online presence.

NIC.br’s Responses and Market Perception

Public inquiries regarding the auction model are typically met with standardized replies from NIC.br, reaffirming the legality and transparency of the process. However, these responses rarely address core concerns regarding market speculation and price distortion.

As a result, there is growing sentiment within the community that the current model prioritizes revenue generation over equitable access — particularly when issues of concentrated ownership and speculative practices are not directly addressed.

Speculators and the Rules That Enable Them

Speculation in domain markets is not inherently negative. In fact, it is a common practice worldwide. The core issue lies in how the rules at Registro.br structurally favor speculation over democratization.

The application model — allowing up to 200 bids per release round without any requirement to use or activate acquired domains — enables accumulation of massive portfolios, locking premium names away from broader use.

Furthermore, while NIC.br is a nonprofit entity, the revenue generated through auctions is significant. Though these funds are reinvested in internet infrastructure, a more balanced policy could be adopted to improve accessibility and foster fair competition.

Legal and Ethical Considerations

The auction process is entirely legal and aligned with guidelines set by Brazil’s Internet Steering Committee (CGI.br). The participation of speculators is legitimate as long as it does not involve unlawful behavior such as cybersquatting (registering domains in bad faith, particularly those tied to third-party trademarks).

Nevertheless, the lack of countermeasures to balance the market raises ethical concerns regarding NIC.br’s mission to ensure universal and equitable internet access in Brazil.

Other registries, such as those for ".edu" or ".org", implement restrictions that prioritize usage criteria or limit resale. While not perfect, such models demonstrate that alternatives are possible and worth exploring for a more inclusive domain ecosystem.

Paths Forward

Several improvements could help balance the current auction model without compromising legality or operational transparency:

  • Full Public Transparency: Allow public access to auction results, including historical bid data and winning entities (with appropriate privacy protections). This would strengthen trust and oversight.

  • Reform of the Release Window: Reduce the 7-day hold period and limit cancellation cycles. Introducing a warning system and symbolic fees after the first request could deter abuse and shorten wait times.

These recommendations aim to foster a fairer marketplace, in line with the NIC.br’s stated commitment to equitable internet access.

Current Landscape

Registro.br’s auction mechanism is a critical tool for domain management in Brazil. However, its current structure favors speculators, contributes to market inflation, and restricts access to premium domains.

The 7-day windows, repeated cancellations, limited public transparency, and institutional silence on structural issues all exacerbate the market imbalance. Meanwhile, new players face obstacles in securing quality domain names at reasonable prices.

This article invites an informed and constructive debate on the future of domain policy in Brazil. It is up to the internet community, NIC.br, and CGI.br to explore paths that promote a more balanced and democratic domain market.

Legal Notice: This article is an opinion-based analysis derived from public information available as of June 2025. It does not contain legal accusations or claims of misconduct. For official details, consult the Registro.br website.

0 Comments