Registrars challenge Australia’s .au domain rule change

A group of ten domain name registrars has formally requested that auDA, Australia’s country-code top-level domain (ccTLD) manager, reverse a recent policy decision affecting .com.au and .net.au domains. The change, approved by auDA’s board, removes the long-standing “close and substantial connection” test for third-level .au domain registrations, replacing it with a requirement that domain names must exactly match a registrant’s registered business name, trademark, or personal name.

The registrars argue that the new rules could invalidate between 50% and 80% of the 3.5 million currently registered .com.au and .net.au domains. In a joint letter to the auDA board, they warned that businesses often register domains for marketing campaigns, product-specific landing pages, or memorable email addresses that do not align with their legal names. These use cases, they contend, are critical for customer engagement and brand protection but would no longer qualify under the stricter eligibility criteria.

What the policy change entails

Under the new rules, businesses and individuals seeking to register or renew .com.au or .net.au domains must provide documentation proving the domain matches their registered business name, trademark, or personal name. The registrars’ letter highlights several scenarios where this requirement would create problems:

• Domains used for short-term marketing campaigns or product launches that do not mirror the registrant’s legal name.
• Misspelled or alternative versions of a brand name, registered to prevent customer confusion or cybersquatting.
• Platforms or services operated under a distinct name that is widely recognized but not formally trademarked.
• Email addresses tied to domains that differ from the registrant’s legal identity.

The registrars also cautioned that the change could drive businesses toward generic top-level domains (gTLDs) like .com, which lack the same eligibility restrictions. Tucows, one of the signatories to the letter, has not commented publicly beyond its participation in the coalition. The identities of the other nine registrars remain undisclosed.

Industry concerns and potential fallout

The registrars’ letter frames the policy shift as a departure from how businesses actually use domains. They argue that the new rules fail to account for the flexibility required in digital branding, where domains often serve as tools for customer acquisition, investor relations, or operational efficiency rather than mere legal identifiers. The potential invalidation of up to 2.8 million domains could disrupt long-standing online presences, forcing businesses to either rebrand or migrate to alternative TLDs.

auDA has not yet responded to the registrars’ request. The organization’s Policy Advisor Panel, which recommended the change, included members who opposed the decision, as discussed in a recent podcast episode. The dissenting panelist noted that the new rules were approved despite concerns about their practical impact on registrants.

What to watch

The outcome of the registrars’ appeal could set a precedent for how ccTLD policies balance regulatory compliance with business flexibility. If auDA upholds the change, registrars may accelerate efforts to educate customers about gTLD alternatives or lobby for additional exemptions. Conversely, a reversal could prompt auDA to revisit its policy development process, potentially incorporating broader stakeholder input in future decisions.

The situation also highlights a broader tension between domain regulators and registrars, particularly in ccTLDs where local policies often prioritize national identity or legal alignment over global best practices. Similar debates have arisen in other jurisdictions, such as the European Union’s .eu eligibility rules, where residency requirements have faced criticism for limiting cross-border business opportunities.