02:17 PM EDT, 07/25/2024 (MT Newswires) -- Verisign's ( VRSN ) long-held contract with a federal agency to manage internet domains is being challenged by members of the US House Committee on Energy and Commerce.

The members want the National Telecommunications and Information Administration to "reassess" many of the terms of its contract with Verisign ( VRSN ) to manage internet domain names and registries prior to its scheduled renewal later this year.

Verisign ( VRSN ) has operated the .com and .net domain registries since 2006 under a contract with NTIA. The current contract expires Nov. 30. In their letter to NTIA Administrator Alan Davidson, the three lawmakers asked whether the contract should instead be put up for competitive bids instead of automatically renewing every four years at the company's option.

The lawmakers, all Republicans, also want to re-examine provisions of the contract. The company has increased the price of registering or renewing a .com or .net domain name by as much as 7% per year.

"Some have argued that Verisign ( VRSN ) enjoys considerable profit margins from managing the registry, charging far more than it costs to operate it," according to the letter signed by committee chair Cathy McMorris Rodgers (R-Washington) and two subcommittee chairmen. They also asked Davidson to provide details of any negotiations with Verisign ( VRSN ) as well as any input from other federal authorities or the public about the contract process before Aug. 8.

Verisign ( VRSN ) did not immediately respond to a message from MT Newswires seeking comment.

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