Obama administration sees daylight with Congress on Internet privatization

Commerce Department officials think they’re making headway on Capitol Hill with the Obama administration’s plans to follow through with a Clinton-era directive to privatize certain Internet management functions, even as the House readies to again delay the move.

Last March, the Commerce Department said it would finish the transition started in the late 1990s, and set this September as the deadline for proposals on how to do so. But Congress refused to fund the move, and required the administration to delay its plans to turn over stewardship of the Internet naming system to the “global multi-stakeholder community” by a year.

Congress cited worries that the transfer might embolden authoritarian regimes to censure and take control of the Internet.

In 1998, following a directive by President Clinton to privatize technical Internet functions “in a way that increases competition and facilitates international participation in its management,” the U.S. created the California-based nonprofit Internet Corporation for Assigned Names and Numbers to oversee the domain name system, which allocates global IP addresses. ICANN, through a contract with Commerce’s National Telecommunications Information Administration, acts as the world’s Internet Assigned Numbers Authority.

Multiple global working groups representing all sectors have been working on proposals for the transition and on ICANN accountability. The administration, adhering to the Clinton commitment to allow private sector “leadership for DNS management,” recently asked the groups how much more time they need.

Congress has held multiple hearings since last March and numerous bills have been introduced that would do everything from completely blocking the transition to ensuring that the administration and ICANN adhere to certain stipulations. These critics want more definition on what the multi-stakeholder community is, what national security concerns might arise, and what steps will be taken to ensure another government can’t seize control of the system.

This week, the House will consider a Commerce, Justice and Science Appropriations bill that includes a provision from Rep. Sean Duffy, R-Wis., to prohibit the transfer for a year.

“The administration has been more focused on appeasing international players rather than protecting a free and open Internet,” Duffy said in a statement to the Washington Examiner. “They said numerous concerns would be addressed before any transfer takes place, but questions from Congress about ICANN’s ability to manage this role without U.S. oversight persist, as recent hearings have shown.”

On Tuesday, the White House said it can’t support Duffy’s amendment to delay the transfer.

“The administration strongly objects to the provision that prevents the National Telecommunications and Information Administration from using funds to relinquish its responsibility with respect to Internet domain name system functions, a commitment the U.S. government made more than a decade ago,” the White House said. “The successful transition of these functions would facilitate a free and open Internet managed through a multi-stakeholder governance structure.”

Last month, the House Energy and Commerce Committee held a hearing on a bill from Rep. John Shimkus, R-Ill., that would require a General Accountability Office report before any transition is finalized. His bill was attached to last year’s Defense Department Appropriation bill.

“What we have always wanted to do with the Dotcom Act is to exercise vigorous oversight on the transition and make sure it’s done right — trust but verify,” Shimkus stated before the May 13 hearing. “As a legislative body, we have authority and responsibility to oversee the activities of NTIA. We get one bite at the apple with this and we would be negligent in our responsibilities to not ensure that NTIA and the administration are living up to their promises.”

It’s precisely that kind of talk that makes administration officials think they’ve made progress.

“When we first announced plans to transition our stewardship role with respect to the Internet domain name system, some members of Congress raised questions,” Fiona Alexander, an NTIA associate administrator, said. “We recognized their concerns and provided reassurance that we would not move forward unless the multi-stakeholder community delivers a proposal that meets the criteria that we outlined.”

“Based on recent Senate and House Commerce committee hearings, Congress appears to be shifting away from whether the transition should happen at all to what must a transition proposal include,” Alexander added.

ICANN meets again in Argentina later this month, which should reveal how much consensus exists for draft proposals already presented and how much more time the various working groups need. Regardless of how much progress is revealed, no one expects the work to wrap up before the government’s Internet Assigned Numbers Authority contract with ICANN expires in September. Commerce is prepared to extend that contract for at least another year and has the option to do so for up to four.

The business community largely supports the move but also wants to ensure that the “global multi-stakeholder community” is truly in charge post-transition and that no other government or single entity can hijack ICANN.

“This transition is the best opportunity to pursue difficult and sometimes controversial changes to ensure that ICANN is accountable to the entire community it was created to serve,” Steve DelBianco, executive director NetChoice, stated in testimony before the House Energy and Commerce Committee. “By the same token, this transition is the last opportunity for the US government to use its leverage to get ICANN to accept and implement the community’s proposed accountability enhancements.”

Late last month ICANN CEO Fadi Chehadé, who has pushed for the transition, announced that he will leave the organization in March, prompting concern about the move for greater independence for the nonprofit body.

“NTIA remains committed to the responsible and timely transition of our stewardship of the Internet domain name system,” NTIA Administrator Lawrence Strickling stated in response. “A successful transition does not depend on the leadership of a single individual, but rather the engagement of the global multi-stakeholder community working collaboratively to ensure that the Internet remains open, secure and resilient.”

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