The problem here isn't ICANN.
ICANN is a non-profit organisation that is responsible, amongst other things, for the operation of the worldwide Internet naming conventions i.e. the assignation of ip addresses and the creation/maintenance of top level domains.
The operator for .com names is Verisign and it is they who set the 'wholesale' price of this tld to registrars. The 7% figure has been agreed with ICANN as a maximum increase for five of the next seven years.
On the brightside this doesn't mean that other tld administrators will raise their prices (although they may well do). There's also the chance that they will lose their franchise in 2012 when it comes up for renewal.
As for what ICANN do. Well they are one of the governing bodies of the Internet as a whole and are central in lots of different ways to the way the whole shebang works.
Another possible check on Verisign is the expected, slow, growth of IPv6. This provides an almost inexhaustible supply of IP addresses and will likely lead to the creation of more tlds. More tlds means more competition which means that prices should theoretically fall in the long term....probably.
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homo sum: humani nil a me alienum puto ... ( just Google it )
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