.eu is the country code top-level domain (ccTLD) for the European Union, and organisations and citizens of EU member states, which was launched on 7 December 2005. Trademark owners were able to submit registrations through a sunrise process (similar to the launch of .info), in an effort to prevent cybersquatting. Full registration started on 7 April 2006.
On 7 February 2006, the registry was opened for company, trade and personal names. In the first 15 minutes, there were 27,949 total applications, and after one hour, 71,235.
Bob Parsons, CEO and co-founder of Go Daddy, criticized the landrush process designed by EURid. Particularly, he condemned the use of shell companies by some registrars. In his blog, he stated "These companies, instead of only registering their real active registrars, created hundreds of new "phantom" registrars." Parsons cited a group of about 400 companies, all with similar address and contact information based in New York, each registered as an LLC; in his opinion, these were phantom registrars "created to hijack the .EU landrush."
These "phantom" registrars effectively had hundreds of opportunities of registering a domain whereas a genuine registrar effectively only had one opportunity to register the same domain. Thus some registrants were crowded out of the .eu landrush process and many generic .eu domain names are now owned by the companies using these "phantom" registrars.
Patrik Lindén, spokesman for EURid, denied the allegations by Parsons, stating that "[EURid] verified that each registrar was an individual legal entity. Each had to sign an agreement with us, and prepay €10,000." Parsons didn't dispute that each registrar was a separate legal entity, but noted that creating such entities was trivial: "Mr. Linden seemed proud that the EURid registry verified that each applicant was a legal entity before it was accredited. Take a moment and think about what that means. You can form a “legal entity” for $50 – an LLC – and you are good to go. Is that what we want a registry to do? Don’t we want them instead to make sure that the organization it allows to provide end-users with its domain names – especially Europe’s very own domain name – are actually in the domain name registration business?"
The EURid organisation investigated some allegations of abuse, and in July 2006 announced the suspension of over 74,000 domain names and that they were suing 400 registrars for breach of contract. The status of the domains was changed from ACTIVE to ON-HOLD. This meant that the domains could not be moved or have their ownership changed. The registrars also lost their access to the EURid registration database meaning that they could no longer register .eu domain names. The legal action relates to the practice of Domain name warehousing, whereby large numbers of domain names are registered, often by registrars, with the intention of subsequently selling them on to third parties. EURid rules state that applications for domains can only be made after a legitimate application has been made to a registrar. The 74,000 applications were made in the name of only three Cyprus registered companies— Ovidio Ltd, Fausto Ltd and Gabino Ltd.
The affected registrars, joined in the action by the affected registrants obtained a provisional order from the Court of First Instance in Brussels, Belgium on 27 September 2006. The court ordered EURid to release the blocked domain names or else pay a fine of €25000 per hour for each affected domain name. EURid complied with the court order and changed the status of the domains from ON HOLD to ACTIVE and restored EURid registration database access to the affected registrars.
The main legal action, that of EURid seeking the registrar agreements between EURid and the registrars in question to be dissolved has still to be heard.
The second-level domain .europa.eu has been reserved for EU institution sites, with institutions and agencies making the switch from .eu.int to .europa.eu domains on the Europe day of 9 May 2006. The European Central Bank is however not under the "Europa umbrella" due to its political independence, and uses only ECB.eu
In most countries of the EU, the national ccTLDs have the major share of the market with the remainder spread over .com/.net/.org/.info/.biz. As a result of this, .eu has had an uphill battle to gain a significant share of these national markets. The dominant players tend to be the national ccTLD and .com. The other TLDs such as .net, .org and to a lesser extent .info and .biz have progressively smaller shares of these national markets.
Over one year after the launch of .eu (5 July 2007), the number of .de domains registered was 11,079,557 according to the German .de registry's statistics page, while number of German owned .eu domains according to EURid's statistics page was 796,561. The number of .uk domains registered was 6,038,732 according to .uk registry Nominet's statistics page The number of apparently UK owned .eu domains was 344,584.
The number of registrants with five domains or fewer registered in .eu ccTLD was, according to these statistics, 805,316. These registrants accounted for 1,128,454 domains out of 2,444,947 .eu domains registered as of 31 December 2006. These registrations, typically those of individuals and companies protecting their brand, only represent 46% of the number of registered .eu domains.
It had been actively targeted during the Sunrise period by speculators using fast track Benelux trademarks to create prior rights on various high value generic terms and during the landrush by speculators using EU front companies in the UK and Cyprus to register large numbers of domains. While speculative activity occurred with the launch of other domains, it was the scale of the activity that called into question the competence of EURid in protecting the integrity of eu ccTLD.
The number of .eu domain registrations during the year after the landrush 7 April 2006 to 6 April 2007 seems to have peaked at approximately 2.6 million .eu domains. The market adjustment that follows a landrush in any domain name extension ensures that the number of registered domains will fall as many speculative domain registrations that failed to be resold will not be renewed. This is sometimes referred to as the Junk Dump. On the morning of 7 April 2007, the number of active .eu domains stood at 2,590,160 with approximately 15,000 domains having been deleted since 5 April 2007.
Approximately 1.5 million .eu domains were up for renewal in April 2007. The EURid registry software is based on the DNS. be software and domains are physically renewed at the end of the month of their anniversary of registration. This process differs from more sophisticated registries like that of .com TLD and other ccTLDs that operate on a daily basis. As with any post-landrush phase, an extension shrinks as the Junk Dump takes effect.
The extent of the shrinkage of .eu ccTLD is difficult to estimate because EURid does not publish detailed statistics on the number of new domains registered each day. Instead it provides only a single figure for the number of active domains. The number of new registrations are combined with numbers of domains registered. Approximately 250,000 .eu domains were either deleted or moved into quarantine by 30 April.