The Liechtenstein Data Protection Act (DSG) explicitly includes the factor of "Processing in Context of Local Establishment" in determining its applicability to non-public bodies. This is evident in Article 2(3) of the DSG, which outlines three scenarios where the Act applies to non-public entities.

The first two scenarios directly relate to the factor under examination:

1. "the controller or processor is processing data in Liechtenstein"
2. "the processing of personal data takes place in the context of the activities of an establishment of a controller or a processor in Liechtenstein"

These provisions extend the law's applicability to data processing activities that have a connection to Liechtenstein, either through direct processing within the country or through processing related to the activities of an establishment in Liechtenstein.

The law adopts a broad approach to ensure comprehensive coverage of data processing activities with a nexus to Liechtenstein. It captures not only data processing physically occurring within the country but also processing that is contextually linked to establishments in Liechtenstein, even if the actual processing might occur elsewhere.

Implications

This approach has significant implications for businesses:

1. Local Processing: Companies directly processing data in Liechtenstein, regardless of their place of establishment, fall under the DSG's scope.
2. Establishment Context: Businesses with establishments in Liechtenstein must comply with the DSG for data processing related to these establishments' activities, even if the processing itself occurs outside Liechtenstein.
3. Broad Interpretation: The law's wording suggests a potentially wide interpretation of "establishment" and "context of activities," which could extend to various forms of business presence or operations in Liechtenstein.
4. Extraterritorial Reach: The provision effectively gives the DSG a degree of extraterritorial application, as it can apply to processing activities outside Liechtenstein if they are linked to local establishments.
5. Compliance Obligations: Non-public bodies falling under these provisions must comply with the full scope of the DSG, as opposed to the limited application (only Articles 9 to 20 and 39 to 44) for entities not meeting these criteria.