Chile's legislature has enacted a dedicated digital services law that imposes new obligations on technology companies operating in the country. The rules entered into force in early 2025, with a staggered compliance timeline that leaves a narrowing window for international businesses to act. Companies that miss the first compliance milestone risk administrative sanctions, temporary suspension of services, and reputational damage in one of Latin America's most digitally active markets.
Chile's new digital services regulation creates binding requirements for online platform operators, software providers, and algorithmic service suppliers active in the Chilean market. Affected companies must register with the competent authority, implement algorithmic accountability mechanisms, and appoint a local representative – all by the deadlines set out in the law. The regime applies regardless of where the service provider is incorporated.
This alert sets out what changed, which business categories are in scope, and the concrete steps international companies must take now.
What changed and when it takes effect
Chile's technology legislation has historically relied on general consumer protection and data protection rules to govern digital services. The new law creates a distinct regulatory regime for digital services and replaces the fragmented approach with a single, sector-specific body of rules.
The core change is the introduction of positive obligations for digital service providers. Before this law, Chilean technology legislation addressed liability and content removal reactively. The new regime is proactive: providers must demonstrate compliance before problems arise, not after.
Three categories of obligation are now active. First, registration and transparency: all in-scope providers must register with Chile's regulator and publish standardised terms of service in Spanish. Second, algorithmic accountability: providers that use automated decision-making systems affecting Chilean users must document how those systems operate and make that documentation available to regulators on request. Third, software liability provisions establish that providers bear responsibility for material harm caused by defective digital services, subject to defences available under Chilean civil legislation.
The effective date for large and very large platform operators is January 1, 2025. Smaller operators – those below the user-volume thresholds set in the law – have until July 1, 2025 to achieve full compliance. Companies that were not previously active in Chile but enter the market after the law's commencement must comply from the date of market entry.
For international companies, the extraterritorial scope is a critical point. The law applies to any provider that targets Chilean users, generates revenue from Chilean users, or directs commercial communications at the Chilean market – regardless of where the company is based. A technology licensing arrangement concluded entirely outside Chile does not shield the licensor from these obligations if Chilean users access the licensed service.
To discuss how Chile's digital services rules apply to your company's current activities, contact us at info@ferrazwhitmore.com.
Which companies are affected and what they must do now
The law applies to a broad range of business categories. Any company operating in the following segments should treat itself as presumptively in scope and seek legal confirmation of its status.
- Online platforms that connect buyers and sellers, including marketplaces, app stores, and gig-economy intermediaries
- Search engine and content recommendation service providers with a material Chilean user base
- Cloud computing and infrastructure providers whose services are consumed by Chilean businesses or consumers
- Software-as-a-service operators, including enterprise productivity tools and consumer applications
- Providers of AI-driven services – including AI Act compliance tools, automated content moderation systems, and algorithmic scoring services – that produce outputs affecting Chilean users
The threshold criteria that determine whether a provider qualifies as a "large" or "very large" operator are based on monthly active users in Chile and annual revenue attributable to the Chilean market. Providers above the upper threshold face the most extensive obligations, including independent algorithmic audits. Providers between the lower and upper thresholds face a reduced but still material set of duties. Providers below the lower threshold have lighter obligations but are not exempt from registration and transparency requirements.
A common mistake by international companies is to assume that operating through a local distributor or reseller insulates the foreign provider from direct liability. Chilean technology legislation does not accept that assumption. The law treats the entity that controls the service as the regulated party, not merely the entity with a Chilean commercial registration.
Five immediate actions are required for international companies:
- Confirm threshold status. Audit monthly active users and Chilean-attributable revenue to determine which compliance tier applies.
- Register with the competent authority. Complete the registration process, including submission of Spanish-language terms of service and a contact point for Chilean regulatory communications.
- Map algorithmic systems. Identify all automated decision-making processes that affect Chilean users and prepare documentation meeting the algorithmic accountability standard.
- Appoint a local representative. Designate an individual or entity in Chile authorised to receive regulatory notices and respond on behalf of the provider.
- Review technology licensing agreements. Update technology licensing contracts that involve Chilean counterparties to reflect the new software liability rules and allocate compliance responsibilities clearly.
For international companies with intellectual property assets deployed in the Chilean market, the new liability rules interact directly with existing intellectual property protections in Chile. Licensing structures that were designed under the old regime may need amendment to remain effective and compliant.
Companies operating across Latin America should also review our analysis of digital services regulatory developments in the United States, where comparable obligations are emerging at both federal and state level. Aligning compliance programmes across jurisdictions reduces duplication and builds a more defensible position in each market.
To receive a tailored compliance assessment for your digital services operations in Chile, contact us at info@ferrazwhitmore.com.
About Ferraz & Whitmore
Ferraz & Whitmore is an international law firm based in Lisbon, advising technology companies, platforms, and investors across 46 jurisdictions. Our Americas practice, led by Marco Reyes, supports clients in managing digital services regulation, AI Act compliance obligations, algorithmic accountability requirements, and software liability exposure across Latin American markets including Chile. Engaging a lawyer in Chile with cross-border technology experience is essential when regulatory obligations extend across multiple jurisdictions simultaneously. As an international law firm in Chile advisory matters, Ferraz & Whitmore combines civil law expertise with common law analytical rigour to deliver practical compliance strategies. Our attorneys have advised on technology licensing transactions and digital regulatory matters across both civil law and common law systems. To discuss your company's position under Chile's new digital services rules, contact us at info@ferrazwhitmore.com.
Disclaimer: This publication is provided for informational purposes only and does not constitute legal advice. The information herein should not be relied upon as a substitute for professional legal counsel tailored to your specific circumstances. Ferraz & Whitmore assumes no liability for actions taken or not taken based on the contents of this material. For advice regarding your particular situation, please contact info@ferrazwhitmore.com.