Photo: Yahoo en Mexico
Yahoo and its Mexican affiliate Yahoo de Mexico are breathing a sigh a relief after a Mexican Appellate court reduced a breach of contract fine from $2.5 billion to an ‘economical’ $172,500.
The massive fine was issued against Yahoo and its Mexican operations when it was sued for breach of contract as a result of its business dealings with Worldwide Directories and Ideas Interactivas. Yahoo was sued after it terminated a joint venture with Worldwide and Interactivas.
The Mexican joint venture was created to produce online and print yellow pages throughout Mexico and eventually in Central America and then globally. The joint venture was launched in 2002 and terminated in 2005 even though it was to contractually end in 2009.
Yahoo de Mexico filed an appeal after a lower court judge ruled against
Yahoo and issued the $2.75 billion judgment. At the time the fine represented all of Yahoo de Mexico’s operating cash.
Yahoo en Mexico is not in the clear yet, Worldwide and Interactivas can appeal the lower judgement amount.