File - Yahoo says the government threatened to fine the company $250,000 a day if it did not comply with demands.
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The government called for the huge fine in 2008 if Yahoo didn't go along with an expansion of U.S. surveillance by surrendering online information, a step the company regarded as unconstitutional. At stake, according to the government, was the nation's security.The outlines of Yahoo's secret and ultimately unsuccessful court fight against government surveillance emerged when a federal judge ordered the unsealing of some material about Yahoo's court challenge.In a statement Thursday, Yahoo said the government amended a law to demand user information from online services, prompting a challenge in 2007 during the George W. Bush administration.In its court papers, Yahoo urged that the government be reined in.Yahoo lost the battle in the surveillance review court.
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