Worldcoin, a financial network and identity platform founded by Sam Altman, CEO of OpenAI, has been unsuccessful in its attempt to defend its operations in Spain through legal means. The company filed an injunction against an order from the Spanish Data Protection Agency (AEPD) to cease data collection in the country, but the court rejected the request.
On March 6, the AEPD issued a temporary order prohibiting Worldcoin from collecting data in Spain for a period of three months. The purpose of this order is to allow the AEPD to investigate complaints that users in Spain are unable to withdraw consent and that Worldcoin has collected data from minors.
Worldcoin, however, denied these allegations. In a statement provided to Cointelegraph, the company accused the AEPD of bypassing EU law and spreading inaccurate and misleading claims. They also claimed that the AEPD had failed to respond to their letters for several months.
On the same day, Worldcoin’s parent company, Tools for Humanity, filed a lawsuit against the AEPD’s order after suspending its operations in Spain. They presented a motion to suspend the order to the Contentious-Administrative Chamber of the Superior Court of Justice of Spain. According to Worldcoin’s representatives, the AEPD’s ban contradicts the applicable European Union legislation, including the General Data Protection Regulation (GDPR).
According to a report from TechCrunch, on March 11, the Supreme Court of Spain denied Worldcoin’s request for an injunction, emphasizing the importance of safeguarding the public interest. The court also raised doubts about the quality of information provided by Worldcoin regarding the consent of their data donors.
This is not the first time that Worldcoin has faced regulatory pressure in a country. In January 2024, Hong Kong’s Office of the Privacy Commissioner for Personal Data (PCPD) announced an investigation into the company’s operations in Hong Kong, citing serious risks to personal data privacy. Prior to that, Worldcoin’s services were suspended in Kenya and India.
The controversy surrounding Worldcoin revolves around its use of biometric scanning devices called “orbs.” Users of Worldcoin’s services must download an app and visit a facility containing an orb to have their eye scanned for verification. Once verified, their identities are linked to their unique biometric data, which can be independently verified using Worldcoin’s services. Users who sign up for the service and activate their accounts in the World App application are compensated with Worldcoin’s WLD token.