Author: Andrew Allemann Comments: 2 Comments October 11, 2024

GoDaddy faces a setback in antitrust case.

GoDaddy (NYSE: GDDY) has encountered a challenge in its effort to dismiss a portion of the lawsuit brought by Entri.

Entri serves as a link between software-as-a-service (SaaS) providers and domain registrars. When customers need to update their domain’s DNS settings to work with an email service, website builder, or other SaaS platforms, they can utilize a tool directly on the SaaS provider’s site to facilitate these modifications.

The company initially collaborated with GoDaddy to facilitate its solution for domains registered with them. However, GoDaddy subsequently terminated this arrangement, compelling users to rely on the registrar’s proprietary Domain Connect service instead. This led Entri to pursue legal action based on various antitrust claims.

In response, GoDaddy requested that a judge dismiss three specific claims: Count I concerning violations of Section 1 of the Sherman Antitrust Act, Count V related to Tortious Interference with Contract, and Count VI regarding Tortious Interference with Business Expectancy.

Judge Anthony Trenga rejected GoDaddy’s motion to dismiss all three claims. In his ruling, he noted:

GoDaddy’s revised terms of use mandate that users of its domain registration services abandon any third-party aggregator services. This limitation constitutes a negative tying agreement, as it is defined as such and is scrutinized through the antitrust policy considerations that highlight the reasons tying agreements are prohibited under antitrust legislation.

GoDaddy’s restrictive practices eliminate any competition among aggregator services, like Entri Connect, for configuring DNS records. Users are left with no choice but to either adopt GoDaddy’s Domain Connect protocol or update their DNS records manually. This lack of options exemplifies the type of anticompetitive damage that the Sherman Act prohibits.

He further emphasized that while a company holds the right to define the rules under which customers can utilize its products or services, it cannot modify these terms in a manner that contravenes antitrust legislation.

Categories: Domain Registrars

Tags: Entri, GoDaddy, lawsuit, NYSE:GDDY

October 11, 2024 at 10:39 am

Here we go… another masterpiece from GD…

October 11, 2024 at 5:44 pm

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