MEXICO CITY, December 3 - RAPSI, Dmitry Znamensky. A Mexico City court has fined Yahoo $2.7 billion over the non-execution of contracts, Yahoo's report reads.

Worldwide Directories S.A. de C.V. and Ideas Interactivas S.A. de C.V. filed lawsuits against Yahoo which claimed that the Internet giant failed to execute the terms of the contracts concluded between the companies and accused it of loss of profits.

Yahoo had stated that it considers the Mexican companies' arguments groundless and will be appealing against the ruling at the earliest opportunity.

Yahoo is an American company which owns the world's second largest search engine. It was founded by Stanford Ph.D. students Jerry Yang and David Filo in January 1994 and was incorporated on March 1, 1995. The company is headquartered in Sunnyvale, California.