What happens if two applicants apply for the same string in the next round of the ICANN new gTLD program?

When two or more applicants apply for the same string in the ICANN new gTLD program, it leads to a "contention set." ICANN has established specific procedures to resolve these contention sets, as only one applicant can ultimately be delegated the gTLD.

Here's a breakdown of what happens:

1. Identification of Contention Sets: ICANN identifies contention sets when identical or confusingly similar strings are applied for. This can be due to:
   • Exact Match: Two or more applicants apply for precisely the same gTLD string (e.g., both apply for ".example").
   • String Similarity/Confusion: The applied-for strings are deemed so similar that they could cause user confusion (e.g., ".hotels" and ".hoteis").
2. Contention Resolution Processes: ICANN's Applicant Guidebook outlines the mechanisms for resolving these contentions. The primary methods include:
   • Self-Resolution/Private Agreement: In the past, applicants in a contention set were given the opportunity to reach a private agreement among themselves. This might involve one applicant withdrawing their application in exchange for compensation from another, or forming a joint venture. However, for the "Next Round" of the New gTLD Program, ICANN has stated that private resolution of contention sets is generally not allowed. The Board has emphasized a holistic approach to contention resolution where net proceeds would benefit the global Internet community.
   • Community Priority Evaluation (CPE): If one or more of the competing applications is a "community-based" application (meaning it serves a specific defined community and has strong support from that community), it may undergo Community Priority Evaluation. If a community application demonstrates strong community support and meets the criteria, it may be prioritized over other applications in the contention set.
   • ICANN-Facilitated Auction (Auction of Last Resort): If applicants in a contention set cannot resolve the contention through other means (and assuming private resolution is prohibited in the current round), ICANN will conduct an auction. This is considered the "auction of last resort."
     • Applicants in the contention set submit bids.
     • The auction continues until only one applicant remains, and their string can be delegated.
     • The proceeds from these ICANN-facilitated auctions typically go to ICANN for the benefit of the global Internet community, rather than being divided among the applicants.
   • Opportunity for Alternate Strings (Next Round): For the upcoming round, ICANN is exploring allowing applicants to submit one or more alternate strings at the time of application. This could provide an option for an applicant to switch to an alternative string if their initial choice is in contention, potentially avoiding a contention set entirely or resolving it early.

It's important to note that the specific rules and procedures for contention resolution can evolve between rounds of the New gTLD Program, as ICANN continually reviews and updates its policies. The current discussions for the "Next Round" are focused on ensuring fairness, public interest, and exploring alternatives to purely private monetary resolutions.