Mexico City Court Rules That Yahoo! Must Pay $2.7 Billion In Breach Of Contract With Worldwide Directories

Yahoo! said that they will be vigorously pursuing all appeals of a non-final judgement by a Mexico City court that ruled that they must pay $2.7 billion for breach of contract with Ideas Interactivas and its parent company Worldwide Directories.  Yahoo! was supposed to work with the companies to release a printed Yellow Pages of business telephone numbers for Mexico.

“The plaintiffs alleged claims of breach of contract, breach of promise, and lost profits arising from contracts related to a yellow pages listings service,” said a press release.  Yahoo! said that the claims have no remit.

Yahoo! de Mexico struck a deal with Ideas Interactivas that was announced in 2003.  The Yellow Pages was supposed to be called “Yahoo! Páginas Útiles.”

The directory was supposed to have a website and a printed book.  The books were supposed to have maps, a list of businesses, and landmark listings.  It was also supposed to have offers and discounts.

There was supposed to be low-cost advertising options in Yahoo! Páginas Útiles.  It was supposed to have an initial circulation of 800,000 free copies and a second print run of 1.7 million units.

Yahoo!’s total revenue was $1.2 billion last quarter and their profit was $226 million the quarter before.  The $2.7 billion ruling would be quite painful.

[TechCrunch]

This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at
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