Case Study : Multi Jurisdictional Compliance: Yahoo ! Inc.

Case Study: Multi-jurisdictional Compliance, Yahoo Inc.


Introduction:

Yahoo! Inc. is a company running multiple websites in different countries offering various services including search engine and auction places. On its French auction site some third parties posted Nazi related documents and books which were considered racist and anti-Semitic. Two non profit French organizations working against racism and anti Semitism warned yahoo and asked it to remove those postings. Yahoo removed such postings from its website hosted from France but those organizations found similar postings on yahoo’s website hosted from the U.S. which was accessible even for French people.

For yahoo it wasn’t 100% technically possible to block French user accessing those postings. French organizations filed lawsuit against Yahoo for those postings but yahoo claimed that French court cannot enforced in the US under the laws of the US.


Jurisdiction by foreign courts over e-business:

It’s matter of debate since a long time for the new medium of internet in context of jurisdictional issues. Foreign courts can assume jurisdiction over e-business apparently on a few reasons mentioned below

• Website or e-commerce Company is offering product, material or publication which hurts feelings or beliefs of foreign residents.

• The material published on the website is an offense as per the laws of the foreign country.

• The website is hosted from the foreign country itself or is solely established for the people of the foreign country.

Here, third consideration is quite significant while foreign court decides to file lawsuit against an e-commerce company. It’s possible that the website is having material which is not suitable for foreign nationals. Though foreign nationals are able to access that website, if the website is not hosted from the foreign country and it’s not explicitly meant for the foreign nationals, it cannot be the base for the foreign court to file a lawsuit against the company provided that the country from where the website is hosted has no restriction for such material. The reason being for the same is that internet is a global open place and such restriction could harm rights of nationals of so many other countries.


Should the French court hold Yahoo Liable?

While Yahoo has removed controversial material from the website hosted from France, French court should no more hold yahoo liable because of the reasons mentioned below.

• Website having Nazi material is hosted from the US and it is not meant for French nationals.

• The US laws do not restrict Yahoo from publishing the material and French court cannot enforce lawsuit in the US
• Now when the material is not solely for French nationals, it is up to the person whether he/she wants to access it or not and yahoo doesn’t force anyone to access that material.

• Such jurisdiction can harm freedom of internet if every country starts enforcing its laws for the websites as internet doesn’t belong to any country and it’s a global open place.

Alternatively, France has an option of blocking any website from its gateway if it finds that the material is offence to the country rather than asking the e-business company to remove or block French nationals from accessing the same.


Recommendations for Yahoo:

Though Yahoo could get clean chit from the US court, company should have taken care when the very first time it let the third party publish offensive material on company’s website hosted in France.

To prevent such law suit in future, yahoo should

• Do prior research about the country’s culture and regulations before hosting its website in the country.

• Prevent third party to publish offensive material on company’s web space located in foreign country.

• Though it is not technically possible, Yahoo should try its best to block foreign nationals accessing its US website’s material which is not suitable for them or which can harm their feelings. Though it is not required by US law, would help Yahoo in maintaining good relationship with foreign country for its future endeavors.