Nature of the Case
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Facts
Yahoo!, Inc. (D) is a US corporation incorporated under the laws of Delaware. Its affiliate, Société Yahoo France (D) is incorporated under the laws of France. D offers online services accessible by internet users worldwide. D runs an auction website where users can post items for sale and other users worldwide can place bids. D warns users that they must abide by its rules and refrain from selling items and entering into prohibited transactions under the applicable domestic law. D allows visitors to its Yahoo.com site to view Nazi-related objects for sale. Visitors to the Yahoo France site were unable to see the images directly from that site. They could see them if they followed a link from Yahoo.fr to Yahoo.com. The Ligue Contre le Racisme et l’Antisemitisme (LICRA) and Etudiants Juifs de France (UEJF) (Ps), sued Yahoo and Yahoo France in a French court, seeking damages and specific performance. Ps sued before the Tribunal de Grande Instance de Paris. Ps alleged that D allowed the posting of illegal items, including Nazi paraphernalia and Third Reich memorabilia, in violation of Article R645-1 of the French Criminal Code. D's defense was that these auctions were conducted under the jurisdiction of the United States, there were no technical means to prevent French residents from participating in these auctions, that D's servers were located on US territory, that their services were primarily aimed at US residents, that the First Amendment to the United States Constitution guarantees freedom of speech and expression, and that any attempt to enforce a judgment in the United States would fail for unconstitutionality.
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