Yahoo Faces a Crisis

Yahoo is getting burned after a conflict with the Chinese government over a journalist. According to the South China Morning Post:

Bloggers and human rights groups are calling for a boycott of Yahoo after the United States internet giant supplied information to the Chinese central government that led to a 10-year prison sentence for mainland journalist Shi Tao.

Several posters to internet forums and blog sites criticised Yahoo for its actions and promised to quit using the company's services. "I do not intend to click on Yahoo ever again, and I'm urging everyone I know to do the same," one internet poster said.

The controversy surrounding Yahoo's involvement in the case highlights the risks foreign internet companies take on as they pursue the lucrative mainland market: complying with the government's strict demands on regulation of the internet could end up damaging a company's reputation back home.

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