Are .io domains at risk of being terminated due to recent geopolitical developments? Read on to learn more.
Recently, there has been significant news surrounding .io domains, which are highly popular among SaaS, Web3, and FinTech companies. This change could have major implications for our clients across B2B tech, so we’re here to explain the situation and how it may affect your website.
The root of the issue lies in a geopolitical shift: the United Kingdom has announced its decision to return control of the Chagos Islands—a group of islands located in the Indian Ocean—to Mauritius.
Why does this matter? The Chagos Islands, though remote, are the legal foundation of .io domain registration. Historically, the .io country-code top-level domain (ccTLD) has been tied to the British Indian Ocean Territory (BIOT), where the Chagos Islands are located. Now that sovereignty over the islands will transfer back to Mauritius, the fate of the .io domain is uncertain.
The British government officially made this decision on October 3rd, 2024, after an ongoing dispute between the UK and Mauritius, supported by a 2019 International Court of Justice ruling. This agreement followed two years of negotiations and marked a historic shift in sovereignty over the Chagos Archipelago.
The agreement is subject to the finalization of a treaty, which will outline the details of the transfer. While this transfer will restore Mauritius's sovereignty over the islands, there will be a 99-year arrangement allowing the UK to maintain military operations on Diego Garci.
B2B tech websites like Outreach.io, Redis.io, Sentry.io, Builder.io, and thousands of others are concerned about how this geopolitical change might impact their online presence.
Understanding the significance of this treaty requires looking at the origins of the .io domain and its connection to the Chagos Islands. Established initially as the ccTLD for the BIOT, .io has been widely adopted by tech and gaming companies due to its resemblance to "input/output" (I/O), a concept central to tech culture.
However, ccTLDs are inherently tied to the legal authority of the region they represent. In this case, .io has always been linked to the British administration of the BIOT. Since Mauritius will assume sovereignty over the Chagos Islands, control over the .io domain could also transfer.
If that happens, the legal management and operation of the .io domain could change. In a worst-case scenario, the .io domain might even lose its status as a ccTLD if governing bodies decide it no longer aligns with international standards post-transfer.
As it stands, there are a few different scenarios that could unfold:
The case for .io domains disappearing:
If the Internet Assigned Numbers Authority (IANA) follows its protocol, .io domains could become ineligible due to the loss of BIOT as a recognized region. According to IANA guidelines, a ccTLD can be phased out over a period of five to ten years once the region it represents no longer exists.
The case for .io domains staying:
There’s also a possibility that Mauritius will maintain the domain. Many countries recognize the economic value of ccTLDs. For example, the domain .ai (Anguilla) generates significant revenue due to its association with artificial intelligence. In 2023, .ai domain registrations generated approximately $32 million USD – more than 20 percent of the government's total revenue for the year.
Similarly, Mauritius may choose to retain .io due to its popularity and financial value in the tech world.
Regardless of what happens, this is a story that will evolve over time, and keeping a close watch on updates from IANA and other regulatory bodies will be critical for tech marketers.
As a tech company with a .io domain, here’s what you can do to stay prepared:
Monitor updates: Keep an eye on developments from organizations like IANA, ICANN, and domain registrars. These bodies will likely provide official guidance if any significant changes occur to .io domains.
Secure alternative domains: Even if nothing happens immediately, it’s wise to proactively purchase alternative domains, such as .com, .org, or even .ai. This way, your brand can seamlessly transition if required.
Consult your registrar: Many domain registrars (like GoDaddy, Bluehost, and Cloudflare) will offer advice and updates. Reach out to them to understand what they’re seeing on the horizon and ask about how you can protect your brand's online presence.
In the worst-case scenario, if .io domains are abolished, you will have to migrate your website to another domain. This could be extremely concerning for some businesses, who could have to deal with either 1) buying a very expensive .com, .org, or .ai domain or 2) changing their domain to one that is not already taken.
One way or another, this will likely have an impact on your SEO.
The disappearance of .io domains could disrupt search visibility by breaking backlinks, causing a loss of accumulated link equity, and decreasing domain authority. Even with 301 redirects, websites may face drops in organic traffic and keyword rankings as search engines take time to re-index new URLs.
If this does happen, migrating to a new TLD requires precise planning and monitoring with tools like Google Search Console to avoid penalties from broken links and crawl errors.
The potential loss of .io will undoubtedly send ripples through the broader domain industry. Here are some impacts to consider.
Valuation of domains: Right now, .io domains hold significant value, especially in the tech world. However, the uncertainty surrounding their future could cause this value to drop, impacting both domain investors and businesses.
Growth of alternative domains: If .io disappears, there could be a rise in the popularity of other ccTLDs like .ai, .tech, and even generic top-level domains (gTLDs) like .com or .org. Domain registrars will likely see increased demand for these alternatives.
Economic shifts: As mentioned, ccTLDs can be a lucrative asset for countries. The shift in control over .io could result in a new economic opportunity for Mauritius, assuming they choose to retain and manage the domain.
So, what are the odds that .io domains will be disbanded?
No one knows for sure. This is still a developing story and the timeline for a decision could extend for several years.
But if you take into consideration the amount of potential revenue for Mauritius, it would make sense for their government to support .io TLDs. And we’re talking about millions of dollars annually for a small island country, so this isn’t insignificant money.
However nothing is for certain and if you are currently hosting your website on a .io domain, you should be prepared with a backup plan. The domain market may be extremely volatile in the next couple of weeks, but it could be worth exploring and securing alternative domains for your business.
We aren’t sure when the next update will be, but keep an eye out so you give your B2B tech company as much time as possible to react to the news.