The most reported potential problem of opening up the system to many more domain names is the potential for cybersquatters to buy up the names of existing brands and then use such domain names in bad faith.

Cybersquatters may use a domain name containing a recognised trademark in a number of ways, including generating web traffic and revenues for themselves, creating malicious websites damaging a company, organisation or individual or selling the web address at an inflated price to the trademark owner.

To avoid this, companies will need to purchase the relevant names for all new top level domains, dramatically increasing the cost of internet management.