CHILE Law and Practice Contributed by: Claudio Magliona, Bárbara Reyes and Diego Lisoni, Magliona Abogados
• SERNAC has asked the courts to suspend World - Coin operations in Chile until it is proven that the company complies with regulations. Universities v FNE • The National Economic Prosecutor’s Office (FNE) has faced opposition from three universities (PUC, USACH, and University of Chile) when requesting student contact information for a market study on higher education. • Universities argue that the FNE does not have the authority to request personal data from students (since this requires express legal authorisation according to the current Law 19,628), and that doing so would affect their right to privacy, and that this would violate the principle of proportional - ity in the processing of personal data. • The FNE defends its competence to request the information, arguing that it is necessary for the market study and that Law No 20.945 grants it the power to require information from individuals. Sánchez v WorldCoin • In this case, the Court of Appeals of Valparaíso rejected the protection action filed by a man against WorldCoin. The ruling was confirmed by the Supreme Court in December 2024. • The Court argued that the plaintiff consented to the scanning of his iris in exchange for cryptocur - rency and that concerns about data storage on the blockchain should be resolved through the specific procedures established in Law No 19.628 (eg, right to suppression of personal data). 2.3 Collective Redress Mechanisms The National Consumer Service (SERNAC) could bring collective actions on behalf of the collective or diffuse interest of consumers before courts. 3. Requirements for the Protection and Processing of Non-Personal Data 3.1 Objectives and Scope of Data Regulation General Legal Framework for Non-Personal Data Unlike the European Union, Chile does not currently have a single, comprehensive piece of legislation equivalent to the EU Data Act that governs cross-sec -
tor access and sharing of non-personal data. There is no unified statutory regime dedicated solely to indus - trial data, non-personal IoT data, or the commercial exchange of data between private entities. Instead, the regulation of non-personal data is frag - mented across various sectoral laws and technical standards, focusing primarily on cybersecurity, public sector interoperability, and financial stability. Public Sector Data Management and Interoperability While a unified law is absent, there is significant leg - islative and regulatory activity regarding data govern - ance within the state, which directly impacts private sector providers. The National Public Sector Data Management System Discussions are currently underway regarding a legis - lative proposal establishing the National Public Sec - tor Data Management System. This initiative seeks to create a robust governance framework for data held by the state. • Secondary Regulations: The implementation of such a system implies the enactment of numerous secondary regulations to define technical stand - ards. • Impact on Private Providers: This framework will significantly impact private entities providing ser - vices to the state, particularly regarding interopera - bility. Private vendors interacting with public bodies will be required to align their technical standards with government protocols to ensure seamless This move towards a data-driven state is supported by Law No 21.180 on the Digital Transformation of the state. This law mandates that administrative proce - dures be expressed through electronic media. • Interoperability: Public bodies must achieve a high degree of interoperability to avoid duplicating infor - mation requests to citizens. • Technical Standards: Decree No 7/2023 establish - es technical standards for information security and data exchange and security. Digital Transformation Law
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