So you end up with the IETF standardising .local, because Apple was already using it, but ICANN never did much with that standardisation.
I doubt ICANN will actually touch .local, but they could. One could imagine a scheme where .local is globally registered to prevent Windows clients (who don't always support mDNS) from resolving .local domains wrong.
> This document specifies that the DNS top-level domain ".local." is a special domain with special semantics, namely that any fully qualified name ending in ".local.
https://datatracker.ietf.org/doc/html/rfc6762
Applications can/will break if you attempt to use .local outside of mDNS (such as systemd-resolved). Don't get upset when this happens.
Interesting fact: RFC 6762 predates Kubernetes (one of the biggest .local violators), they should really change the default domain...
https://datatracker.ietf.org/doc/html/rfc6761#section-3
And ICANN is bound by the IETF/ICANN Memorandum of Understanding Concerning the Technical Work of the IANA, which prevents it from usurping that jurisdiction: