Private domains – also known as proxy registrations – keep the registrant’s contact information from being listed in the WHOIS database. The domain is registered in the name of the registrar, rather than the actual domain user. Among the market leaders is Go Daddy, which currently charges $8.95 for a private registration.

“We want to change the domain registration market the way we changed the Web hosting market – with competitive pricing and inclusive packages,” said 1&1 Chairman Andreas Gauger. “We’re offering a lot of things that most other companies charge extra for, because we firmly believe in providing the most value for the money.”

1&1 is leaving no doubts about who it sees as its major competition. “1&1 will draw direct comparisons to its biggest competitors — Go Daddy and Yahoo! — in advertising and marketing campaigns supporting the new features and unchanged pricing,” the company said. Print ads will feature a chart with a side-by-side comparison of the three providers.

Last week Go Daddy began offering free e-mail accounts with every domain name purchase, while Yahoo Small Business redesigned its e-commerce hosting to allow more customization for merchant hosting clients.