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<DIV><SPAN class=104515015-26052004><FONT face=Arial color=#0000ff size=2>Bob is
correct that negative margins can amount to predatory pricing which would be a
concern to govermental agencies that are concerned with anti-trust
enforcement. </FONT></SPAN></DIV>
<DIV><SPAN class=104515015-26052004><FONT face=Arial color=#0000ff size=2>Icann
policy making should not be concerned about the effect on any registrars that
operate under negative margin as this is anticompetitive.</FONT></SPAN></DIV>
<DIV><SPAN class=104515015-26052004><FONT face=Arial color=#0000ff
size=2></FONT></SPAN> </DIV>
<DIV><SPAN class=104515015-26052004><FONT face=Arial color=#0000ff
size=2>Margie</FONT></SPAN></DIV>
<BLOCKQUOTE>
<DIV class=OutlookMessageHeader dir=ltr align=left><FONT face=Tahoma
size=2>-----Original Message-----<BR><B>From:</B> Robert F. Connelly
[mailto:rconnell@psi-japan.com]<BR><B>Sent:</B> Wednesday, May 26, 2004 6:44
AM<BR><B>To:</B> Registrars Constituency<BR><B>Subject:</B> Re: [registrars]
Regarding taxes<BR><BR></FONT></DIV>At 01:58 AM 5/26/2004, Bruce Tonkin
wrote:<BR>
<BLOCKQUOTE class=cite cite="" type="cite">I don't disagree that the
increase in ICANN fees will affect a small<BR>registrar, but it should be
understood that the increase in transaction<BR>fee (from 18 cents to 25
cents) significantly affects large registrars<BR>that sell a large volume of
names at a small or even <FONT color=#ff0000>negative margin.</FONT>
</BLOCKQUOTE><BR>Dear Bruce: Negative margins are exactly what many of
us are trying to oppose. It borders on or is in fact a case of
"predatory_pricing", something very much of concern to the anti-trust
departments of our respective governments.<BR><BR>Regards,
BobC<BR><BR></BLOCKQUOTE></BODY></HTML>