Microsoft and global cybercrime

From The Official Microsoft Blog:

On June 19, Microsoft filed for an ex parte temporary restraining order (TRO) from the U.S. District Court for Nevada against No-IP. On June 26, the court granted our request and made Microsoft the DNS authority for the company’s 23 free No-IP domains, allowing us to identify and route all known bad traffic to the Microsoft sinkhole and classify the identified threats.

Microsoft granted rights to take control of another business' DNS, to “identify and route” bad traffic? This doesn’t sound right, no matter how much I hate malware.