If a company running a country code top-level domain refuses to agree to hand over any information or data held by it to the government, either legally, illegally or extra-legally, secretly or not, the government can simply replace the company with a government-run agency. If it refuses to shut down a website, or to redirect it elsewhere, the government can simply replace it with a government-run agency.
It is a nuclear option, but neverthless a nuclear option that didn't exist prior to July. It will also never have to be used - the threat of its use will see any company wanting to keep hold of its livelihood agree to government demands.
Of course this would never happen. Except it has already. Within months of the government-run "Association of Kazakh IT Companies" getting control of Kazakhstan's internet domain, it shut down the website of British comic Sacha Baron Cohen (best known as Ali G). The site at www.borat.kz featured another of Cohen's comic creations, Borat Sagdiyev, a Kazakh journalist. It was removed from the Internet.
Why? The president of the organisation said it was so the comic "can't bad-mouth Kazakhstan under the .kz domain name". If you want an example of government-owned and run censorship on the internet, you'll be hard pushed to find a clearer example.
My heads been under a rock the past few months. I knew some TLD shit was going down, but didn't really know what it was about until now. Damn!