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Company alleges that GoDaddy is unfairly blocking it from automating customers’ DNS change requests.
A company that helps domain owners update DNS records has filed an antitrust lawsuit against GoDaddy (NYSE: GDDY).
Entri acts as a conduit between SaaS companies and domain registrars. If a customer needs to update their domain’s DNS records to work with an email provider, site builder, or other SaaS business, they can use a wizard directly on the SaaS company’s website to make these changes.
This avoids the confusing process of logging into a domain registrar and making manual DNS changes, such as adding TXT and CNAME records.
DNS changes are a problem that has plagued both domain registrars and SaaS companies for years. Both deal with customer support requests from confused customers.
Citing this problem, GoDaddy created Domain Connect as an open standard published under the MIT license in 2016.
Entri was founded as an alternative solution to facilitate SaaS companies’ integrations with domain registrars for DNS changes.
The company cites drawbacks to Domain Connect as reasons why companies would pay for Entri’s service. In addition to reduced technical implementation work, Entri states that Domain Connect only works with four domain registrars. Entri’s solution works with 40, meaning that more SaaS companies’ customers can configure their domains through its solution than through Domain Connect.
According to Entri’s lawsuit (pdf), it initially offered its clients the ability to make changes on domains at GoDaddy through Entri’s custom solution. The lawsuit states that, at GoDaddy’s request, it began using the Domain Connect protocol for GoDaddy connections beginning in April 2022 and signed an agreement:
“Pursuant to that Agreement, when a new SaaS company wished to use Entri Connect, Entri sent to GoDaddy a “template,” consistent with the Domain Connect protocol, that set forth the required DNS settings for that SaaS company’s application. GoDaddy would then onboard that template, which would allow Entri Connect to work as intended with GoDaddy-registered domains.”
There were many requests for these templates. The lawsuit states that by July 2023, the companies had a shared Slack channel where Entri would make template requests.
But then Entri received disturbing news.
In August 2023, a GoDaddy employee informed Entri via Slack: “[a]ll Domain Connect [sic] asks are currently on hold. Resources are at a premium and the DNS team is extremely busy. You may post your requests in here, but we will not act on them at this time.”
Entri alleges that GoDaddy then asked it to pay a licensing fee to use Domain Connect. Despite Entri believing it had an agreement in principle, the parties were never able to finalize a contract.
The lawsuit alleges that in December 2023, GoDaddy instituted a new policy stating that customers could not use Entri to change their DNS. It also informed some of Entri’s SaaS customers that they could no longer use Entri to change their customers’ DNS records.
The lawsuit quotes one unnamed Entri customer’s recollection of its conversation with GoDaddy:
Transparently, [GoDaddy] had like kind of like scare tactic meeting where they got [] aggressive with us… The tone of the meeting was so negative that it like left us scarred… it was just like so unpersonable [sic] and so mean, to the point where we were like, we didn’t do anything, um so anyways, we just wanted to circle back with you all. I don’t know if you’re hearing this from others. I’m imagining you are, based on the tone of their conversation, it clearly sounds like they’re trying to monetize something that they haven’t monetized before, and they’re trying to claw back as much of the [] revenue as they can, but [] we’ve enjoyed working with you all, and we really like your product, so, like, we’re hoping to continue to use it, but also, in the middle of our day to day, kind of being pulled aside and being scolded, we’re a little bit taken aback.
Entri’s customers began complaining to the company, citing that a large percentage of their customers use GoDaddy. Entri’s service could no longer work for these customers, significantly reducing its value.
This is where antitrust laws come into play, according to Entri:
Entri’s experience with its customers demonstrates that GoDaddy has the unique ability to force SaaS companies and their end users to behave in ways that are inconsistent with how they would ordinarily act in a free market. Entri’s customers and prospects have expressly told Entri as much.
Entri further wrote:
Entri is not suggesting—and has never suggested—that GoDaddy is obligated to work with Entri. From 2021 to April 2022, Entri supported users with DNS records at GoDaddy-registered domains using its own systems and processes for configuring DNS records. From April 2022 to January 2024, it used Domain Connect, in accordance with GoDaddy’s preferences. Either is acceptable. But what GoDaddy cannot lawfully do is threaten Entri’s customers or attempt to restrict Entri from assisting end users in setting up their stated DNS configuration preferences
Interestingly, according to the lawsuit, GoDaddy is now asking companies that use Domain Connect to make changes on domains registered at GoDaddy to pay a fee.
GoDaddy said it does not comment on pending litigation.
Categories: Domain Registrars
Andrew Allemann has been registering domains for over 25 years and publishing Domain Name Wire since 2005. He has been quoted about his expertise in domain names by The Wall Street Journal, New York Times, and NPR. Connect with Andrew: LinkedIn – Twitter/X – Facebook
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says
O M G I WAS CHARGED ENDLESS FEES TO HAVE A JANKY BUSINESS WEBSITE. I BOUGHT MICROSOFT 365 FOR LIFE, BUT HAVE TO PAY TO HAVE THEM THERE. IM A NON PROFIT ORGANIZATION SO THEY BASICALLY SOLD ME A PACKAGE OF JUNK.
says
Hi Nichole,
Cute approach here but its giving child. Please revisit your sentiment.
says
From personal experience, GoDaddy will happily change anything they want anytime and basically tell you to get a lawyer if you show them deal.
says
Updates
says
GoDaddy also will grab and scalp a domain customers leaves in their cart overnight. It’s happened to multiple people I know. These are cheap, $5 domains. So, we discovered all you need to do is offer $250 and the broker fee, $69, and they’ll sell it to you
says
Just a little bit strange what’s going on at GODADDY Bob Persons needs to come back and sort it out
says
Why is this page filled with GoDaddy ads?
Domain Name Wire is a trade publication for the domain name industry covering topics relevant to domain investors, brand owners, policy makers, domain registrars and registries, and more. Founded in 2005, Domain Name Wire has been cited by Wall Street Journal, New York Times, NPR, and Washington Post. Read More About DNW
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