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The final decision on Google-China censoring deals ended the company's business in the largest Internet market of world. GoDaddy and Network Solutions, being the largest US domain registration and web hosting companies GoDaddy and Network Solutions terminated to register domain names in China.

The companies decided ultimately to quit business in China and both are pointing to the political demands of government for the personal information criteria of the clients. The executive VP of GoDaddy said that the company had no interference to the decision of Google, but to the enhanced demands of Chinese government and the concern of the company for customers, this activity had taken place. Go Daddy made a statement that they do not want to act as an agent for Chinese government and hence, they've taken such decision.

Network Solutions reportedly announced Wednesday that it had stopped hosting new websites with the .cn China domain in December, for much similar reason to that of Go Daddy.

China Internet Network Information Center authorizes companies outside China to sell the .cn domains, but in December, the organization made amendments to its policies for requirement of the registrars to collect color headshots, business information and other details about domain registrants. Both companies said they would continue to support domains already registered, but had ceased to generate out new business in the region.

References have been made about eNom, which currently manages tens of thousands of .cn domains and even tends to continue registering domains. The article quotes general manager Jeffrey Eckahus, who acclaims that the company considers about the need of personal information they are willing to surrender a decision best left to the individual registering the domain.

This issue has an obvious privacy and human rights angle and actually, the cost of making complex fact-gathering is also a major consideration in the domain business. Neither company mentioned money as a motivator in their decisions to pull out of China because domain registration is a business with very less margins and cost of gathering and verifying registrant information has a definite impact on the potential for profit in a variety of country-code TLDs, including .cn.

source : http://www.kvcwebhosting.com/hosting-news/577/godaddy_and_network_solutions_terminates_business_from_china.html