Worldcoin, a global financial network established by Sam Altman, the CEO of OpenAI, has been unsuccessful in its legal efforts to defend its operations in Spain. The company filed for an injunction against an order from the Spanish Agency for the Protection of Data (AEPD) that prohibited Worldcoin from collecting data in the country for three months. The court denied Worldcoin’s request, allowing the AEPD to investigate complaints that users in Spain have been unable to withdraw consent and that Worldcoin has collected data from minors.
Worldcoin has strongly refuted these allegations and accused the AEPD of spreading inaccurate and misleading claims while circumventing EU law. The company claims that the AEPD failed to respond to its letters for months. In response to the AEPD’s order, Worldcoin’s parent company, Tools for Humanity, filed a lawsuit on March 6. They submitted a motion to suspend the regulator’s order to the Contentious-Administrative Chamber of the Superior Court of Justice of Spain. Worldcoin’s representatives argued that the AEPD’s ban contradicts relevant EU legislation, including the General Data Protection Regulation (GDPR).
Unfortunately for Worldcoin, their injunction request was denied by the Supreme Court of Spain on March 11. The court emphasized the importance of safeguarding public interest and expressed doubts about the quality of the information provided by Worldcoin regarding the consent of its data donors. This setback is not the first for Worldcoin, as the company has previously faced regulatory pressure in other countries. In January 2024, the Office of the Privacy Commissioner for Personal Data in Hong Kong announced an investigation into Worldcoin’s operations due to concerns about personal data privacy. The company’s services have been suspended in Kenya and India in the past.
The main point of contention surrounding Worldcoin is its use of biometric scanning devices called “orbs.” Users of the Worldcoin service are required to download an app and visit a facility with an orb for their eye to be scanned, verifying their identity. These biometric data are then tied to the users’ identities, which can be independently verified using Worldcoin’s services. In return for signing up for the service and activating their accounts on the World App application, users are paid using Worldcoin’s WLD tokens.
Despite Worldcoin’s ambitions to create a globally inclusive identity and financial network, it is currently facing significant legal challenges in Spain and other countries. The outcome of these legal battles will shape the future of Worldcoin’s operations and determine whether it can overcome the concerns raised by regulators regarding data privacy and consent.
It’s disappointing to see Worldcoin’s injunction request being denied, indicating they have a weak defense.
Worldcoin’s claims of the AEPD spreading inaccurate information are just a desperate attempt to cover up their own wrongdoing.