The Brussels company EURid that controls the .eu domain has suspended 74,000 domain names and is in the process of taking legal action against 400 registrars.

EURid believes that the registrars frozen out have been warehousing the domain names to sell on at a higher price.

This is an apparent breach of contract as only domain names for existing customers should be registered and not prospective ones.

EURid stated: "In this case we are convinced that the domain name holders of the 74 000 .eu names are acting as a front for a number of registrars. The domain name holders and the registrars can be regarded as one and the same.

"Since registrars should only register domain names for existing customers and not 'warehouse' the names in order to resell them at a higher price, this is clearly in breach of the registrar contract."


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