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Nov. 14, 2007

Yesterday, Yahoo settled a suit with two Chinese journalists who were jailed after the company provided Chinese authorities with information about their Internet activities.

Details of the settlement weren't made public.

Earlier in 2007, the two Chinese journalists in question and one of their family member sued the search company, after Yahoo H-K (Yahoo's wholly owned subsidiary based in Hong Kong) turned over to authorities in China emails containing pro-democracy literature.

The jailed journalists alleged in the lawsuit that some cell mates have tortured them and that Yahoo was responsible for the ordeal.

Yahoo has denied any responsibility and maintained it was complying with Chinese laws when it turned over the emails to China's government.

The court case has raised some questions about whether online companies should cooperate with governments that deny freedom of speech and frequently crack down on journalists.

Such international legal problems have also been the subject of congressional hearings, where lawmakers accused Yahoo of collaborating with an oppressive communist regime that had a long history of using tactics that are largely considered undemocratic in the U.S.

Neither opponents disclosed terms other than to agree that Yahoo would pay the attorneys fees of the two journalists and the family member who sued.

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Source: Compete.com