GoDaddy Warns India’s Fake Website Crackdown Risks Internet Safety and Legitimate Businesses

GoDaddy, the world’s largest internet domain registrar, has raised alarms regarding India’s recent actions against counterfeit websites that impersonate well-known brands. The company asserts that these measures could compromise the safety of the internet for legitimate businesses and have far-reaching global consequences.

The surge in smartphone and internet usage in India, the most populous country, has been accompanied by a significant increase in online fraud. This issue poses a considerable challenge for Prime Minister Narendra Modi’s administration, which recorded 2.4 million complaints of cyber fraud last year, totaling approximately $2.4 billion.

Legal actions began in 2019 when numerous Indian and international companies, including Amazon and McDonald’s, initiated lawsuits against fraudulent websites misusing their names. In December, an Indian court ordered the shutdown of over 1,100 such sites.

New Governance Measures

The New Delhi court’s ruling introduced extensive new regulations that experts claim have fundamentally altered internet governance. Key directives include prohibiting domain sellers from providing default privacy protection to buyers, mandating the disclosure of buyer information to anyone asserting a “legitimate interest” within 72 hours, and banning website addresses that are variations of protected brand names.

GoDaddy has contested these directives in the Delhi High Court, arguing that the ruling could adversely affect legitimate businesses with names similar to major brands. The company contends that eliminating privacy-by-default features would expose legitimate website owners to risks such as stalking and harassment.

As domain names are inherently global, GoDaddy argues that these regulations could compel the company to enforce compliance worldwide. The firm also expressed concerns about the court’s requirement for a 72-hour deadline to provide registration details, stating that it lacks the capacity to determine what constitutes a “legitimate interest.”

Industry Reactions and Implications

GoDaddy’s appeal documents, which span over 5,000 pages, warn that these “commercially destabilizing” directives could drive domain name companies to exit the Indian market. The Indian government and GoDaddy did not respond to requests for comments.

With an annual revenue of $5 billion, GoDaddy manages approximately 80 million domains and serves over 20 million users. Company executives have identified India as its largest emerging market region for 2024. Other domain registrars, such as Namecheap and Hosting Concepts, have also challenged the New Delhi ruling, although details of their appeals remain unclear.

The legal conflict involving GoDaddy and others was initiated by over 20 companies seeking judicial intervention against fraudulent websites that harm their brands. Notable plaintiffs include Amazon, McDonald’s, Microsoft, Xiaomi, and Colgate-Palmolive, none of whom have commented on the situation.

The December ruling characterized the fraudulent websites as “engines for large scale deception.”

Court’s 14 Measures

Among the 14 measures outlined by the court, one stipulates that masking a domain buyer’s registration details should now be offered as a paid service, as this feature is seen as a means for rogue operators to conceal their identities. Despite the ongoing court order, GoDaddy continues to advertise its services as including “free privacy protection forever,” which redacts personal information from public directories.

GoDaddy argues that the dilution of privacy features contradicts India’s data protection laws and the European Union’s General Data Protection Regulation (GDPR), which emphasizes a “privacy by default” approach. Farzaneh Badii, a researcher specializing in internet governance, criticized the New Delhi ruling, noting that the publication of personal details has led to harassment and phishing attacks.

Badii stated that the individuals most at risk from exposure will be journalists, activists, small business owners, and private citizens, while brand impersonators are unlikely to be affected.

Government’s Stance on Cybercrime

Amit Shah, India’s Home Minister, indicated that a person falls victim to cybercrime every 37 seconds in the country, warning that inaction could escalate the issue into a “national crisis.” The sweeping directives issued in December were influenced by government submissions, as revealed in court documents.

An unreported 59-page IT ministry document from 2023, included in GoDaddy’s appeal, indicated that New Delhi expressed concerns about “domain name abuse” and the “lack of stringent verification.” The home ministry emphasized that registration details should be readily available for investigative purposes.

This position aligns with Modi’s ongoing tensions with global technology firms. The Indian government has frequently criticized companies like Meta, X, Google, and Telegram for not adequately regulating content deemed contrary to national interests.

In cases such as McDonald’s, the company sought legal action against 110 websites, including mcdonaldsfranchiseindia.com, which misused its logo and offered fake franchises for substantial sums.

Challenges with Trademark Variations

Following the court’s blocking of fraudulent sites, GoDaddy has expressed concerns regarding the additional prohibition on offering alphanumeric variations of protected trademarks, such as “McDonald’s.” The company argues that this could act as a “blanket injunction,” complicating implementation.

GoDaddy noted that “McDonald” has Scottish origins, meaning “son of the world ruler,” and argued that restricting its use would effectively grant a monopoly over a common name with historical significance. Despite the court’s ruling, domains like mcdonalds-india-franchise.com remain available for registration on GoDaddy India for approximately $10.

The company also presented research indicating that safeguarding variations of trademarks like “HUL,” Unilever’s Indian unit, could overlap with 118 English words, making it nearly impossible to register domain names that do not intersect with existing trademarks.

The appeals are set to be heard on July 16.

Source: www.emirates247.com

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Published on 2026-07-03 13:16:00 • By the Editorial Desk