Yahoo 2014 Annual Report Download - page 28

A variety of new and existing U.S. and foreign government laws and regulations could subject us to
claims, judgments, monetary liabilities and other remedies, and to limitations on our business
practices.
We are subject to numerous U.S. and foreign laws and regulations covering a wide variety of subject
matters. New laws and regulations, changes in existing laws and regulations or the interpretation of
them, our introduction of new products or forms of advertising (such as native advertising), or an
extension of our business into new areas, could increase our future compliance costs, make our
products and services less attractive to our users, or cause us to change or limit our business
practices. We may incur substantial expenses to comply with laws and regulations or defend against
a claim that we have not complied with them. Further, any failure on our part to comply with any
relevant laws or regulations may subject us to significant civil or criminal liabilities, penalties, and
negative publicity.
The application of existing domestic and international laws and regulations to us relating to issues
such as user privacy and data protection, security, defamation, pricing, advertising, taxation,
gambling, sweepstakes, promotions, billing, real estate, consumer protection, accessibility, content
regulation, quality of services, law enforcement demands, telecommunications, mobile, television, and
intellectual property ownership and infringement in many instances is unclear or unsettled. Further,
the application to us or our subsidiaries of existing laws regulating or requiring licenses for certain
businesses of our advertisers can be unclear. U.S. export control laws and regulations also impose
requirements and restrictions on exports to certain nations and persons and on our business.
Internationally, we may also be subject to laws regulating our activities in foreign countries and to
foreign laws and regulations that are inconsistent from country to country.
The Digital Millennium Copyright Act (“DMCA”) is intended, in part, to limit the liability of eligible
online service providers for caching, hosting, listing or linking to, third-party Websites or user content
that include materials that give rise to copyright infringement. Portions of the Communications
Decency Act (“CDA”) are intended to provide statutory protections to online service providers who
distribute third-party content. We rely on the protections provided by both the DMCA and the CDA
in conducting our business, and may be adversely impacted by future legislation and future judicial
decisions altering these safe harbors or if international jurisdictions refuse to apply similar
protections.
Various U.S. and international laws restrict the distribution of materials considered harmful to children
and impose additional restrictions on the ability of online services to collect information from minors.
These laws currently impose restrictions and requirements on our business, and future federal, state
or international laws and legislative efforts designed to protect children on the Internet may impose
additional requirements on us.
Fluctuations in foreign currency exchange rates may adversely affect our operating results and
financial condition.
Revenue generated and expenses incurred by our international subsidiaries and any equity method
investee are often denominated in the currencies of the local countries. As a result, our consolidated
U.S. dollar financial statements are subject to fluctuations due to changes in exchange rates as the
financial results of our international subsidiaries and any equity method investee are translated from
local currencies into U.S. dollars. Our financial results are also subject to changes in exchange rates
that impact the settlement of transactions in non-local currencies. The carrying values of our equity
investments in any equity investee are also subject to fluctuations in the exchange rates of foreign
currencies.
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