Yahoo!’s Mexican Lawsuit Gets Reduced From $2.75 Billion To $172,500

Posted May 17, 2013

In December 2012, we wrote about Yahoo! was ordered by a Mexico City Court that they need to pay a $2.75 billion fine for a breach of contract to Ideas Interactivas and its parent company World Wide Directories related to releasing a printed Yellow Pages of business telephone numbers in Mexico.  Fortunately Yahoo!’s fine has been dropped to $172,500 based on an appellate court decision in Mexico.  The fine will be paid by Yahoo! Mexico.

Worldwide Directories sued Yahoo! for breaking off the telephone directory project that they started in Mexico with plans to eventually expand internationally.  The $2.75 billion in damage amount was extrapolated based on the prospects of overseas expansion.  Oddly enough, the $2.7 billion judgment was issued by a law clerk on behalf of a judge that stepped down from his position before the judgment was entered.  Yahoo! Mexico was awarded $2.6 million in the original judgment and the award was confirmed by the appellate decision.  The plaintiffs may appeal the decision.

The lawsuit was filed by World Wide Directories, S.A. de C.V. and Ideas Interactivas, S.A. de C.V. against Yahoo! Mexico and Yahoo Inc. in 2011.  Yahoo! appealed the judgment to a three-magistrate panel of the Superior Court of Justice for the Federal District.