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iPlanet and Microsoft's MSN; other information services we provide, such as classifieds, horoscopes and real time market quotes, 

compete with specialized content providers.  

our merchant services compete with online payment processing services such as VeriSign's Signio, Plug `n Play, CyberSource, portals 

such as AOL, Yahoo and MSN, merchant aggregators such as Big Step and Microsoft's Bcentral, and merchant hosting providers such 

as Verio, Interland and Dellhost; our yellow pages services compete with other providers such as Switchboard, InfoUSA, Yahoo 

Yellow Pages and AnyWho.com; our shopping services compete with other providers such as MySimon; 

our wireless services compete with in house information technology departments of wireless carriers and device manufacturers, and 

some of our services compete with those provided by OpenWave, i3Mobile, and Seven; and 

in international markets, we compete with local companies which may have a competitive advantage due to their greater understanding 

of and focus on a particular local market. 

We expect that in the future we will experience competition from other Internet software and application services companies, including 

Microsoft and AOL. Some of these companies are currently customers of ours, the loss of which could harm our business.  

Many of our current customers have established relationships with some of our current and potential future competitors. If our competitors 

develop information Internet software and application services that are superior to ours or that achieve greater market acceptance than ours, our 

business will suffer.  

Governmental Regulation 

Because of the increasing use of the Internet, U.S. and foreign governments have adopted or may in the future adopt laws and regulations 

relating to the Internet, addressing issues such as user privacy, pricing, content, taxation, copyrights, distribution and product and services 

quality.  

Recent concerns regarding Internet user privacy have led to the introduction of U.S. federal and state legislation to protect Internet user 

privacy. Existing laws regarding user privacy that we may be subject to include the Children's Online Privacy Protection Act, which regulates 

the online collection of personal information from children under 13, and the Gramm Leach Bliley Act, which regulates the collection and 

processing of personal financial information. In addition, the Federal Trade Commission has initiated investigations and hearings regarding 

Internet user privacy, which could result in rules or regulations that could adversely affect our business. As a result, we could become subject 

to new laws and regulations that could limit our ability to conduct targeted advertising, or to distribute or collect user information.  

European legislation to protect Internet user privacy has not greatly impacted us so far. In October 1998, the European Union adopted a 

directive that may limit our collection and use of information regarding Internet users in Europe. European countries may pass new laws in 

accordance with the directive, or may seek to more strictly enforce existing legislation, which may prevent us from offering some or all of our 

services in some European countries.  

We may be subject to provisions of the Federal Trade Commission Act that regulate advertising in all media, including the Internet, and 

require advertisers to substantiate advertising claims before disseminating advertising. The Federal Trade Commission has the power to enforce 

this Act. It has recently brought several actions charging deceptive advertising via the Internet and is actively seeking new cases involving 

advertising via the Internet.  

We may also be subject to the provisions of the Children's Online Protection Act, which restricts the distribution of certain materials 

deemed harmful to children. Although some court decisions have cast doubt on the constitutionality of this Act, it could subject us to 

substantial liability.  

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