The decision yesterday by the Internet Corporation for Assigned Names and Numbers (Icann) to approve VeriSign's .com monopoly has sparked a storm of controversy among domain name registrars.

Domain registrar GoDaddy.com described itself as "outraged" by the vote. "The agreement grants VeriSign uncontested price increases and perpetual monopoly power, which will lead to exorbitant profits at the expense of the internet community," the company said.

The controversial revised agreement settles a long-term dispute between Icann and VeriSign, which operates the .com registry.

The settlement includes a new agreement relating to the operation of the .com registry, which still needs to be approved by the US Department of Commerce.

"If approved, this settlement will clear the way for a new and productive relationship between Icann and VeriSign, facilitating Icann's stewardship and technical coordination of the internet's domain name system," said Icann in a statement.

Icann's board voted 9 to 5 in favour of the agreements with one director abstaining.

The proposed settlement allows VeriSign to raise registration fees by seven per cent annually in four of the next six years.

It also gives VeriSign control of the .com registry indefinitely, as it extends VeriSign's "presumptive renewal" right when the proposed settlement agreement expires in 2012.

Bob Parsons, chief executive and founder of GoDaddy.com, said: "We are bitterly disappointed, but we're not giving up yet. It's simply a bad deal for the industry and registrants everywhere.

"The fact that this monopolistic deal was approved is a loud signal that major changes are needed at Icann."