One encodes strings, and one decodes bytes.
You should read bytes from the file and decode them:
for lines in open('file','rb'):
decodedLine = lines.decode('ISO-8859-1')
line = decodedLine.split('')
Luckily open
has an encoding argument which makes this easy:
for decodedLine in open('file', 'r', encoding='ISO-8859-1'):
line = decodedLine.split('')
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