In a bid to protect EU consumers from online fraudsters, pirates and counterfeiters, the EU’s Digital Services Act looks set to introduce a provision obliging online marketplaces to know who their third-party traders are – the so called ‘Know Your Business Customer’ provision, or KYBC.
But why is the Commission limiting KYBC to online marketplaces when an obligation for
all online intermediaries to verify their business customers has proven to be one of the most effective tools to prevent illegal and abusive online activities and services and essential to create a safer and more transparent internet for all users?
Our experience in Denmark with DK Hostmaster demonstrates that verification of business customers is a simple and effective way to create a safer and more legal Internet for all users. It can be easily applied to all relevant intermediaries who provide business infrastructure services, including but not limited to providers of domain names, hosting services, advertising and payment services.