Worldcoin, a global identity and financial network founded by OpenAI CEO Sam Altman, faces a setback in Spain as it fails to defend its operations against regulatory action. Despite filing an injunction against the local regulator’s order to halt data collection, the court did not grant Worldcoin’s request.
On March 6, the Spanish Data Protection Agency (AEPD) issued a temporary order prohibiting Worldcoin from collecting data in the country for three months. This move follows complaints that users in Spain are unable to withdraw consent and allegations that Worldcoin has collected data from minors.
Worldcoin refuted these allegations, accusing the AEPD of spreading inaccurate claims and failing to respond to the company’s inquiries for months.
In response, Worldcoin’s parent company, Tools for Humanity, filed a lawsuit against the AEPD’s order on the same day, seeking to suspend the regulator’s directive. The company argued that the AEPD’s ban contradicts applicable European Union legislation, including the General Data Protection Regulation (GDPR).
However, the Supreme Court of Spain denied Worldcoin’s injunction request on March 11, emphasizing the importance of safeguarding public interest. The court also expressed doubts about the quality of information provided by Worldcoin regarding the consent of data donors.
This is not the first instance of regulatory pressure faced by Worldcoin. In January 2024, Hong Kong’s Office of the Privacy Commissioner for Personal Data (PCPD) initiated an investigation into the company’s operations, citing concerns about privacy risks. 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 sign up for the service through an app and undergo eye scans at designated facilities. Their identities are then linked to unique biometric data, which can be independently verified using Worldcoin’s services. Users who activate their accounts are compensated with Worldcoin’s WLD token.