GoDaddy did this. Good domains registrars don't.

They didn’t claim it was illegal? It makes it less economical for someone to hold a domain they aren’t planning to use for 20 years. The squatting just gets more expensive.

Yes it’s a common business practice. Doesn’t mean google has to encourage that industry.

I was highlighting that pre-reserving domains is predatory and unethical.

IIRC the domains that are reserved by registrars are usually moved into a temporary hold status with the TLD, so the registrar isn't paying to register the domain, they are just getting the exclusive option to buy said domain for a number of weeks or months. Much cheaper way to squat on domains than actually buying them!

This is not correct. Only registries can reserve domains. If a registrar "reserved" a domain, they'd have to have bought it from the registry.

At least in the past there were cases where some registrars automatically registered the domain if someone searched for it, it may have been in cases where their algorithm deemed the name somewhat premium. They would then essentially hold it hostage for some time, but would then cancel it during the refund period. AGP Limits policy (https://icannwiki.org/Add_Grace_Period) was created to combat that (and some other issues with refunds).

This is called "front-running" by the domain name registrar and it is a big no-no. Fortunately it's not what happened here though.

That's what I assumed simfree was talking about.