A court in Mexico has recently fined Yahoo Incorporated 2.7 billion U.S. dollars over a breach of contract and because of losses from other advertising mediums.
Worldwide directories and Ideas Interactivas, which manages the yellow pages listings in the Mexico has been awarded a judgment against Yahoo! Incorporated and Yahoo de Mexico, A.A. de C.V. by the 49th Civil Court of the Federal District of Mexico City. Worldwide Directories S.A. de C.V. along with Ideas Interactivas, S.A. de C.V, filed the lawsuit.
Worldwide Directories and Ideas Interactivas claims that Yahoo! Inc. breached contractual agreements that caused losses in profit from the local yellow pages listing business. Yahoo has denied the claims and is currently seeking an appeal. If Yahoo is unable to appeal this lawsuit, it will be a mighty blow to the once powerful company.
In an official statement on Yahoo!’s investor page, Sarah Gorgman, a Yahoo! official, says that the claims against Yahoo! are without 'merit' and that the company will 'vigorously' find ways to appeal the court's decision.
“Yahoo! believes the plaintiffs' claims are without merit and will vigorously pursue all appeals. The plaintiffs alleged claims of breach of contract, breach of promise, and lost profits arising from contracts related to a yellow pages listings service," says Gorgman.
This latest news against Yahoo! came a few weeks after the company grabbed former Google executive and spokeperson, Marissa Mayer. Mayer is Yahoo!'s 5th CEO, and the company has been fighting agressively to maintain their position in a highly competitive search, advertising and mobile market.