The Government plans to regulate the State's internet domain name registry following the publication of new legislation shortly.
The Minister for Communications, Mr Dermot Ahern, said yesterday the proposed legislation would transfer regulation and control of the internet registry to the Commission for Communications Regulation (ComReg).
The Bill, which will be brought to Cabinet for approval shortly, will provide for fines of up to €2,000 daily for non-compliance with Comreg's regulations.
ComReg will also be able to impose a levy on the IE Domain Registry, the private company that operates the service, to fund its expenses to manage the registry.
IE Domain Registry has allocated about 40,000 .ie domain registrations to websites.
The Government's decision to regulate the IE Domain Registry follows a legal battle involving the firm and its former chief executive, Mr Mike Fagan.
Mr Fagan was suspended on full pay for more than a year while accountants KPMG investigated the domain registry's operations.
IE Domain Registry subsequently restated its financial accounts and changed its auditor, Dublin-based firm BCW.
The firm's accounts show that it lost €1.2 million in 2002, despite registering a 25 per cent increase in business. In the first six months of 2003, the domain registry made a profit of €160,000, according to its chairman, Mr Séan Scanlan.
In a statement, Minister Ahern said he wanted to ensure that Ireland's domain name registry was in a position to thrive and benefit business and consumers alike.
The .ie name is Ireland's website address. As such, it is in a sense a national resource, he added.
"I believe the transfer of responsibility to an organisation such as ComReg will immeasurably strengthen the operations of the registry. In addition, increased regulatory sanctions will ensure that those in breach of domain name regulations will be hit in their pockets," he said.
A spokesman for the IE Domain Registry said it had been discussing regulatory and other issues relating to the .ie domain name with the Department and will be continuing with these in light of the announcement.