Worldcoin's Legal Attempt to Continue Operations in Spain Thwarted by Supreme Court
Summary:
Worldcoin, a global identity and financial network led by OpenAI's CEO Sam Altman, failed to defend its operations in Spain legally. Following complaints about user consent and data collection from minors, the Spanish Data Protection Agency (AEPD) banned the company's data collection activities in Spain for three months. In response, Worldcoin accused AEPD of ignoring EU law and filed a suit against the order, which was rejected by the Supreme Court of Spain. Notably, the firm has faced regulatory pressure in several other countries and its biometric scanning devices, "orbs", have been a significant source of controversy.
Worldcoin, the global identity and financial network headed by OpenAI's CEO Sam Altman, has been unsuccessful in legally protecting its operations in Spain. The firm sought a court order to resist a regulatory injunction halting data collection in Spain, but the court declined the request. On March 6, the Spanish Data Protection Agency (AEPD) instituted a three-month ban on Worldcoin's data mining activities in Spain. During this suspension, the AEPD plans to investigate grievances that it received regarding users' ability to retract consent and allegations about Worldcoin gathering data from minors. Worldcoin refuted these claims and accused the AEPD of ignoring EU laws and spreading misinformation, as well as non-responsiveness to their letters.
Simultaneously, on March 6, after halting its Spanish operations, Worldcoin's parent company, Tools for Humanity, launched legal action against the AEPD's directive. A proposal to block the regulator's decision was submitted to the Contentious-Administrative Chamber of the Superior Court of Justice of Spain. Worldcoin's representatives argue that the AEPD's restrictions are inconsistent with relevant EU laws, including the European General Data Protection Regulation (GDPR).
Following this, on March 11, the Supreme Court of Spain rejected Worldcoin's application for a court order, emphasizing the paramount importance of public interest protection. The court also questioned the quality of data that Worldcoin supplied regarding the consent of its data donors. This isn’t the first time regulators have pressured Worldcoin; earlier in January 2024, the Hong Kong Privacy Commissioner's Office announced a probe into the firm's operations there due to severe data privacy risks. Prior to that, its services were also discontinued in Kenya and India.
Worldcoin’s controversy stems from its use of biometric scanning devices named "orbs". Individuals register for Worldcoin's service by downloading an app and are then guided to the nearest orb facility where they must provide an eye scan. Once this step is verified, user identities get linked to their specific biometric data, which can be independently confirmed via Worldcoin’s services. Users who register and activate their accounts in the World App are compensated with Worldcoin's WLD token.
Published At
3/12/2024 12:24:44 PM
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