November 20, 2006

EURid, the domain registry responsible for managing .EU domain names, announced last week it is cutting its annual registration charge from 10 Euro to 5 Euro beginning Jan. 1, 2007.

As a result, the new registration fee is $6.41 at today's exchange rate, slightly higher than the current $6.25 wholesale price of .com domains.

Although accredited .eu domain registrars must pay this fee every time they register a domain on behalf of their clients, they can charge any price they wish and do not have to pass this cost savings on to their customers.

Last year, when .net wholesale prices were decreased few registrars passed the savings on to customers. But with overall domain registrations slowing down after its initial rush, registrars may reduce prices on the .eu domain.

Earlier in 2006, the .eu domain launch met with a positive response and a large number of registrations took place. However, it remains to be seen whether the .eu domain will be a success and the kind of effect widespread acquisitions by domain investors will have on the domain.

The world's largest domain registrar, Go Daddy, currently offers .eu registrations at $19.99 per year.

Source: The WHIR