The Personal Data Protection Law of Ecuador uses the domicile of the data controller or processor within the national territory as a factor for determining the law's applicability.

Text of Relevant Provisions

The Law Art.4(b):

"Without prejudice to the regulations established in the international conventions and treaties ratified by the Ecuadorian State that deal with this matter, this Organic Law shall apply when: (b) The controller or processor of personal data is domiciled in any part of the national territory;"

Analysis of Provisions

The Law establishes its territorial scope of application in Article 4, which outlines various scenarios where the law applies. Specifically, Article 4(b) focuses on the domicile of the data controller or processor as a determining factor for the law's applicability.

The provision states that the law applies when "The controller or processor of personal data is domiciled in any part of the national territory". This means that any entity processing personal data that has its legal domicile within Ecuador falls under the jurisdiction of this law, regardless of where the actual data processing activities take place.

The use of the term "domiciled" is significant. In legal contexts, domicile typically refers to the place where an entity is legally registered or incorporated, or where it has its principal place of business. This approach ensures that all entities with a formal legal presence in Ecuador are subject to the country's data protection regulations.

It's worth noting that the law applies to both controllers and processors. This inclusive approach ensures that all entities involved in data processing, whether they determine the purposes and means of processing (controllers) or process data on behalf of others (processors), are equally subject to the law's provisions.

Implications

This provision has several important implications for businesses and organizations:

1. Broad coverage: Any company registered or incorporated in Ecuador must comply with the law, even if their data processing activities occur outside the country.
2. Extraterritorial effect: Multinational companies with a registered presence in Ecuador may need to apply Ecuadorian data protection standards to their global operations if they process data of Ecuadorian residents.
3. Compliance requirements: Entities domiciled in Ecuador need to ensure their data processing activities align with the law's requirements, regardless of where their customers or data subjects are located.
4. Jurisdiction for enforcement: The provision gives Ecuadorian authorities clear jurisdiction over entities domiciled in the country, facilitating enforcement actions if necessary.
5. Potential dual compliance: Companies may need to comply with both Ecuadorian law and the laws of other jurisdictions where they operate or where their data subjects are located.