Yahoo operates internationally and should endeavor to follow some common principles – in the same way as extradition is applied only in cases where similar laws apply. Assisting in tracking murderers, suicide bombers and drug smugglers is not the same as handing over providers of what in most countries would be legitimate news to which the public had a reasonable right.
Yahoo is a leader in the Internet world. Like its peers, it has made much of the liberating role of the Internet in spreading news and ideas, of providing societies with a path of escape from the dead hand of state censorship. But here it is, actively participating in persecution of those practicing the freedoms that it preaches.
See also “A Cooler Look at Yahoo in China” from Business Week.