Privacy

Worldcoin faces pivotal EU privacy decision within weeks

Comment

Worldcoin plans to resume iris scans in Kenya soon
Image Credits: JUAN MABROMATA/AFP via Getty Images / Getty Images under a license.

The next few weeks could be pivotal for Worldcoin, the controversial eyeball-scanning crypto venture co-founded by OpenAI’s Sam Altman, whose operations remain almost entirely shuttered in the European Union following a series of privacy complaints — including in France, Germany, Portugal and Spain.

The only EU market where Worldcoin is still scanning eyeballs according to the Worldcoin.org website is Germany, where its developer Tools for Humanity (TfH) has a local office. But that could change imminently depending on the outcome of an investigation instigated by Bavaria’s data protection authority.

The authority told TechCrunch it expects to reach a decision on the probe soon — a spokesman suggested it will be ready to publish its conclusions in mid July. The watchdog began looking into Worldcoin last year following its global launch in July 2023.

“Taking into account further steps to align with other SA’s [supervisory authorities] I currently expect results that we are able to use in public in mid July 2024,” he told us.

In the EU, complaints have been raised that Worldcoin is breaching the bloc’s General Data Protection Regulation (GDPR), which sets rules for how personal data may be processed. The regime not only gives supervisory authorities, aka data protection authorities (DPAs), powers to issue fines of up to 4% of global annual turnover for confirmed breaches. They can also order non-compliant processing to stop.

That’s important because in the case of a crypto-biometrics project like Worldcoin — which turns a person’s eyeball scan into an immutable identity token stored on a decentralized blockchain — it may mean setting conditions that essentially bar it from the EU for good. Unless Worldcoin is able to revise its system to allow for personal data to be deleted on request. But, er, blockchains don’t typically work like that.

Other GDPR concerns attached to Worldcoin include the legal basis it claims for processing people’s sensitive biometric data for its identification purpose; and whether it’s meeting the regulation’s transparency and fairness requirements.

A key criticism of its approach is that it incentivizes people to hand over their sensitive biometric data in exchange for the eponymous cryptocurrency baked into the proof of “humanness” identity system it’s devised — whereas the GDPR requires consent to data processing to be freely given.

Fears that Worldcoin is posing risks to children have also driven some EU regulators to slap temporary bans on its operations in their own markets this year, after complaints Worldcoin operators had scanned minors’ eyeballs.

Back in March Spain’s DPA took such emergency action — ordering Worldcoin to stop collecting and processing locals’ data for up to three months. It said it was acting on a number of privacy complaints, including about risks to children’s information. The move was quickly followed by a similar order by Portugal’s DPA also acting on complaints Worldcoin had scanned minors’ eyeballs.

Despite these urgent interventions, German privacy regulators have allowed Worldcoin to continue scanning eyeballs in the market while the Bavarian DPA investigates. Although the below image of a Worldcoin scanning location in Berlin — embedded in a post on X — is notable for including a prominent poster in the window displaying an 18+ age limit for submitting irises to the orb.

On Tuesday the Spanish DPA announced that Worldcoin has agreed not to relaunch its operations in the market once its three-month ban order expires shortly. In a press release, it said Worldcoin’s developer has committed — in what it described as “a legally binding manner” — not to resume its activity in Spain until the Bavarian authority has adopted a final resolution on the investigation (or else not before the end of the year).

TfH had initially sought to challenge Spain’s temporary ban in the courts, including by seeking an injunction (which it was not granted). It’s not clear why the company has agreed to wait for the outcome of the Bavarian investigation but it may have decided it’s the best course of action to reduce its regulatory risk. It may also feel confident it won’t have too long to wait for a decision.

The Spanish authority’s press release contains another interesting tidbit — suggesting that following its emergency order TfH announced changes to Worldcoin’s operation which it said included the introduction of controls to verify the age of users; and “the possibility of eliminating the iris code”.

TfH was contacted with questions about its agreement with Spain’s DPA and changes it’s committed to. Company spokeswoman, Rebecca Hahn, pointed us to a statement on Worldcoin’s website — in which the company writes that it has “committed not to perform orb operations in Spain through the end of calendar year 2024, or if sooner, until the BayLDA [Bavarian DPA] consultation process with other EU data protection authorities is concluded”.

Worldcoin’s statement also flags what TfH refers to as a series of privacy and security measures” which it says have been implemented in recent months aimed at addressing DPAs’ concerns. It said this includes “advanced controls for age verification, the deletion of old iris codes by transforming them into SMPC [Secure Multi-Party Computation] shares, optional World ID unverification (including the ability to delete iris codes) and more”.

It is not clear whether transforming iris codes into SMPC shares would constitute deletion of the data under the GDPR.

In its statement, Spain’s DPA said it expects the Bavarian data protection authority’s investigation to be concluded “soon” — adding that it anticipates the final decision to reflect the positions of all concerned European supervisory authorities.

Should there be disputes between DPAs over what to do about Worldcoin, it’s worth noting the GDPR contains a mechanism for handling cross-border complaints that allows concerned authorities to raise objections. If a majority way forward still cannot be found the European Data Protection Board may be asked to step in and make the final call.

This report was updated to include Worldcoin’s statement

More TechCrunch

Vanta, a trust management platform that helps businesses automate much of their security and compliance processes, today announced that it has raised a $150 million Series C funding round led…

Vanta trust management platform raises $150M Series C, now valued at $2.45B

It’s not often you’ll find Microsoft, Amazon, and Meta in the same room collaborating toward the same goals. But that’s exactly what we have with the Overture Maps Foundation, an…

Backed by Microsoft, AWS, and Meta, the Overture Maps Foundation launches first open map datasets

The startup is not disclosing its valuation, but sources close to the company say the figure is just under $400 million post-money.

Dazz snaps up $50M for AI-based, automated cloud security remediation

The outcome of the Spanish authority’s probe could take up to two years to complete, and leave Apple on the hook for fines in the billions.

Apple’s App Store hit with antitrust probe in Spain

Proton’s first cryptocurrency product is a wallet called Proton Wallet that’s designed to make it easier to get started with bitcoin.

Proton releases a self-custody bitcoin wallet

Dental care is a necessity, yet many patients lack confidence in their dentists’ ability to provide accurate diagnoses and appropriate treatments. Some dentists over treat patients, leading to unnecessary expenses,…

Pearl raises $58M to help dentists make better diagnoses using AI 

Exoticca’s platform connects flights, hotels, meals, transfers, transportation and more, plus the local companies at the destinations.

Spanish startup Exoticca raises a €60M Series D for its tour packages platform

Content creators are busy people. Most spend more than 20 hours a week creating new content for their respective corners of the web. That doesn’t leave much time for audience…

Mark Zuckerberg imagines content creators making AI clones of themselves

Elon Musk says he will show off Tesla’s purpose-built “robotaxi” prototype during an event October 10, after scrapping a previous plan to reveal it August 8. Musk said Tesla will…

Elon Musk sets new date for Tesla robotaxi reveal, calls everything beyond autonomy ‘noise’

Alphabet will spend an additional $5 billion on its self-driving subsidiary, Waymo, over the next few years, according to Ruth Porat, the company’s chief financial officer. Porat announced the commitment…

Alphabet to invest another $5B into Waymo

There is no fool proof way to prevent a buggy update like CrowdStrike’s, but there are best practices that could mitigate the fallout.

How to prevent your software update from being the next CrowdStrike

Spotify CEO Daniel Ek says the streaming service is still in the “early days” of its plans to bring hi-fi support to the platform. During the company’s earnings call on…

Spotify CEO says company is in ‘early days’ of hi-fi audio plans

Featured Article

A comprehensive list of 2024 tech layoffs

The tech layoff wave is still going strong in 2024. Following significant workforce reductions in 2022 and 2023, this year has already seen 60,000 job cuts across 254 companies, according to independent layoffs tracker Layoffs.fyi. Companies like Tesla, Amazon, Google, TikTok, Snap and Microsoft have conducted sizable layoffs in the…

A comprehensive list of 2024 tech layoffs

Tesla was not the first company to begin working on a humanoid form factor, but while being the first to market does carry weight in this high-tech space, we’re at…

Elon Musk sets 2026 Optimus sale date. Here’s where other humanoid robots stand.

Harvey, a startup building what it describes as an AI-powered “copilot” for lawyers, has raised $100 million in a Series C round led by GV, Google’s corporate venture arm. The…

OpenAI-backed legal tech startup Harvey raises $100M

Digital banking startup Mercury informed some founders that it is no longer serving customers in certain countries, including Ukraine.

Digital banking startup Mercury abruptly shuttered service for startups in Ukraine, Nigeria, other countries

Welcome to TechCrunch Fintech! This week, we’re looking at Human Interest’s path toward an IPO, fintech’s newest unicorn, a slew of new fundraises, and more. To get a roundup of…

The next fintech to go public may not be the one you expected

Waymo has started testing on public roads in San Francisco a new robotaxi built by Chinese electric automaker Zeekr.  Waymo has “less than a handful” of the Zeekr vehicles in San…

The Waymo-Zeekr robotaxi has come to San Francisco

The transaction values Cyabra at $70 million, and the company expects the merger to close by the end of the year.

Cyabra, a startup helping companies and governments detect disinformation, plans to go public via SPAC

Featured Article

There’s a lot more to the Kamala Harris memes than you think

“You think you just fell out of a coconut tree?” says Vice President Kamala Harris in a now infamous clip. An overlay of the lime green album art for Charli XCX’s “Brat” flashes on the screen, while a remix of “Von Dutch” scores increasingly frenetic clips of Harris hysterically laughing…

There’s a lot more to the Kamala Harris memes than you think

GM’s self-driving car subsidiary Cruise is scrapping plans to build the Origin — a purpose-built robotaxi with no steering wheel or pedals — and will instead use the next-generation Chevrolet Bolt…

GM’s Cruise abandons Origin robotaxi, takes $583 million charge

The Federal Trade Commission announced on Tuesday that it’s ordering eight companies that offer AI-powered “surveillance service pricing” to turn over information about the potential impact these products have on…

FTC is investigating how companies are using AI to base pricing on consumer behavior

Meta AI, Meta’s AI-powered assistant across Facebook, Instagram, Messenger and the web, can now speak in more languages and create stylized selfies. And, starting today, Meta AI users can route…

Meta AI gets new ‘Imagine me’ selfie feature

Mesa, Arizona-based Rosotics has kept a low profile. From the startup’s website, one would think they are solely focused on selling large metal 3D printers to aerospace and defense customers.…

Rosotics wants to manufacture massive orbital shipyards using 3D printing

Meta’s latest open source AI model is its biggest yet. Today, Meta said it is releasing Llama 3.1 405B, a model containing 405 billion parameters. Parameters roughly correspond to a…

Meta releases its biggest ‘open’ AI model yet

Hustle culture is embedded into the Silicon Valley startup ethos, but the expectation to grind all the time can be detrimental to a founder’s mental health. We’re pleased to welcome…

Andy Dunn talks the importance of founder mental health at TechCrunch Disrupt 2024

Meta has been given until September 1 to respond to consumer protection concerns in the European Union. The Consumer Protection Cooperation (CPC) Network, a network of authorities responsible for the…

Meta given weeks to tell EU consumer protection authorities how it’ll fix ‘pay or consent’

Google is no longer proposing to deprecate third-party tracking cookies in Chrome, instead suggesting that users be given an option to deny tracking.

Google’s latest Privacy Sandbox gambit could pit user choice against tracking

Let’s start with the premise that many people take notes as they work with customers as part of their jobs. As they take notes, they may need to access a…

Noded AI wants to make your notes the center of your work world

Nathan Rosenberg, the founder of farm automation platform Farmblox, said if there is one thing to know about trying to sell technology to farmers, it’s that you can’t tell them…

Farmblox puts the control into farmers’ hands with its AI-powered sensor-reading platform