Whose rules apply to the Web?
Sites go to extraordinary lengths to stay legal in a world where taboos vary.
from the November 21, 2007 edition
Page 3 of 3
"Geofilters" on some Web pages, particularly shopping sites, try to block foreign users, but the filters are easy to fool.
In 2004, Dow Jones settled a $400,000 defamation case by Australian businessman Joseph Gutnick, who sued after a 2000 Barron's Online article linked him to a convicted money launderer. Since the New Jersey-based website broadcast the offending article around the world, Australia's High Court unanimously agreed that Mr. Gutnick could sue under Australia's more stringent libel laws.
More notoriously, when Google launched its Chinese-specific search engine, it agreed to censor certain terms in order to appease Beijing. When users of google.cn look up "Falun Gong" or "Tiananmen Square," they find very carefully worded websites. The company argues that it's better to offer a partial portal than none at all.
Perhaps the biggest challenge for Internet companies today is how to manage their sites in China. Government servers block unauthorized Web pages, and companies wishing to start a localized Chinese version often must make concessions. On Nov. 13, Yahoo settled a lawsuit brought by the families of two journalists who were jailed in China. The case accused Yahoo of illegally aiding the Chinese government in arresting the reporters by handing over information that led to their arrest – and alleged torture.
But what happens the next time a foreign government demands data from a website? Should the company break local laws to protect their users and morals?
"That's a question business schools aren't asking enough," says Peter Navarro, a business professor at the University of California, Irvine, and author of "The Coming China Wars." "Executives, now more than ever, need to answer a range of tough ethical questions, and more universities need to help students think through the problems – to understand where lines should be drawn."
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