Federal govermment threatened massive fines to Yahoo unless they handed over user data to the NSA
The U.S. government threatened to fine Yahoo $250,000 a day in 2008 if it failed to comply with a broad demand to hand over user data that the company believed was unconstitutional, according to court documents unsealed Thursday that illuminate how federal officials forced American tech companies to participate in the NSAs controversial PRISM program.
The documents, roughly 1,500 pages worth, outline a secret and ultimately unsuccessful legal battle by Yahoo to resist the governments demands. The companys loss required Yahoo to become one of the first to begin providing information to PRISM, a program that gave the National Security Agency extensive access to records of online communications by users of Yahoo and other U.S.-based technology firms.
The ruling by the Foreign Intelligence Surveillance Court of Review became a key but almost entirely secret moment in the development of PRISM, helping government officials to convince other Silicon Valley companies that unprecedented data demands had been tested in the courts and found constitutionally sound. Eventually most major American tech companies complied, including Google, Facebook, Apple and AOL. Microsoft had joined earlier, before the ruling, NSA documents have shown.
A version of the court ruling had come out previously, in 2008, but was so heavily redacted that observers were unable to discern what company was involved, what the stakes were and how the court had wrestled with many of the issues involved.
--
PRISM was first revealed by former NSA contractor Edward Snowden last year, prompting intense backlash and a wrenching national debate over allegations of overreach in government surveillance.
U.S. tech companies have struggled to defend themselves against accusations that they were willing participants in government surveillance programs an allegation that has been particularly damaging to the reputations of these companies overseas, including in lucrative markets in Europe.
http://www.washingtonpost.com/business/technology/us-threatened-massive-fine-to-force-yahoo-to-release-data/2014/09/11/38a7f69e-39e8-11e4-9c9f-ebb47272e40e_story.html