The .eu domain has cemented its place in the top ten most popular top-level domains after registering a further 300,000 new domains last year.

The domain, which was launched to great fanfare by registry Eurid when over 70,000 firms applied in the first hour, had been criticised for being too bureaucratic and open to abuse by fraudsters.

Applicants in the sunrise period, for example, needed an affidavit from a lawyer confirming their "prior rights", including unregistered trademarks or company names, in order to register.

And then at around the time of the domain's first anniversary, Eurid was forced to suspend 74,000 domain names and sue 400 registrars for breach of contract.

But after two years, 2.8 million .eu domains have been created, with 80 per cent renewing for their second year. Germany continues to lead the way with 31 per cent of total registrations, followed by the Netherlands and the UK both with 13 per cent.

"The creation of a trustworthy environment with a distinct European identity is at the forefront of my vision for Europe's inclusive Information Society," said Viviane Reding, EU Commissioner for Information Society and Media. "Early adopters of .eu understood its value, and have grasped the opportunity to promote their own pan-European outlook."

Emily Taylor, director of legal and policy for .uk registry Nominet, welcomed the news. "This is, after all, the real test for the success of a new top level domain and is the point at which the value of a .eu registration increases," she added. "As with all top level domains, the more organisations use and promote a .eu, so the uptake and trust in this web presence will increase."