ICANN’s new TLD rules spark pre-reveal contention confusion

ICANN’s latest round of top-level domain expansion has introduced rules that ban private settlements between applicants competing for the same string. However, the language in the 2026 Applicant Guidebook has left many applicants uncertain about whether they can resolve contention before ICANN officially reveals all applications. This ambiguity has raised concerns about potential rule violations and the risk of severe penalties, including application disqualification.

The guidebook explicitly states that only ICANN-run auctions can settle contention sets, a change from the 2012 round, where private auctions were common. In that earlier expansion, applicants frequently negotiated settlements, often splitting proceeds among losers. ICANN’s goal for 2026 was to prevent applicants from entering the process solely to extract payouts from competitors. Yet the guidebook’s wording has created confusion about the timing of communication restrictions, particularly regarding interactions before Reveal Day—the date when ICANN publicly discloses all applications.

What the rules say—and where they’re unclear

The Applicant Guidebook prohibits direct or indirect communication between applicants for the same string from Reveal Day until either a Registry Agreement is signed or an application is withdrawn. However, it does not explicitly address whether applicants can discuss or settle contention before Reveal Day, provided they are not yet in an official contention set. ICANN’s definition of a contention set further complicates matters: it only formalizes after applications are revealed, leaving pre-reveal negotiations in a legal gray area.

Applicants have noted inconsistencies in ICANN’s communications. Some interpret the rules as permitting pre-reveal settlements, while others fear that any discussion—even before contention sets are officially formed—could violate the guidebook. The penalty for non-compliance is severe, with potential disqualification from the entire application process. This uncertainty has led to hesitation among applicants who might otherwise seek private resolutions to avoid costly ICANN auctions.

Industry reaction and calls for clarity

Legal experts and applicants have urged ICANN to clarify the rules. Marc Trachtenberg, an attorney representing multiple applicants, highlighted the confusion in a recent CircleID post, arguing that the current language may deter legitimate negotiations. "If ICANN’s intent was to prevent speculative applications, it has likely succeeded," he wrote. "But the lack of clarity on pre-reveal communication risks stifling valid settlements that could reduce ICANN’s administrative burden."

ICANN has not yet responded to requests for clarification, leaving applicants to navigate the ambiguity on their own. Some industry observers suggest that ICANN may have intentionally left the rules vague to discourage any private settlements, regardless of timing. Others believe the organization will issue further guidance as Reveal Day approaches, though no timeline has been provided.

What to watch

The coming weeks will be critical for applicants awaiting ICANN’s clarification. If the organization confirms that pre-reveal settlements are permitted, it could lead to a flurry of private negotiations before contention sets are officially formed. Conversely, if ICANN reaffirms that all communication is prohibited until after Reveal Day, applicants may face higher costs and delays, as more disputes will proceed to ICANN auctions. The outcome could also influence future rounds of new gTLD expansion, shaping how ICANN balances competition with administrative efficiency.

For now, applicants are advised to proceed with caution, as the risk of violating the rules—even unintentionally—carries significant consequences. The lack of clarity has already slowed some negotiations, with many opting to wait for official guidance rather than risk disqualification.