Yahoo knew of attacks before Google, kept mum

By Alexei Oreskovic and Gabriel Madway

SAN FRANCISCO (Reuters) - Yahoo Inc knew it had been a target to sophisticated Chinese cyber attacks on U.S. corporations before Google alerted the company to them, a source familiar with the matter said, but chose to remain silent after its bigger rival went public.

The two Internet search and email providers had discussed a highly coordinated attack originating in China prior to Google's high-profile announcement on Tuesday, the person said.

Google said the hackers' primary goal was to access Gmail accounts of human rights activists, and that at least 20 other large companies had been targeted. It was unclear whether the attacks on Yahoo were also aimed at grabbing information off emails, or if they had been successful.

Google got in touch with Yahoo "to share knowledge" -- after determining through its own investigations that Yahoo had also fallen victim to cyber attacks -- and Yahoo then confirmed to Google it "was already aware of similar issues on their side," the person said on condition of anonymity.

Yahoo said on Friday it does not generally disclose information about attacks on its systems, but the company takes security very seriously and takes appropriate action in the event of any kind of breach. Google said it would not comment on specific companies involved.

Google said it would no longer censor its Internet search results in the country, and might even pull out altogether.

Thus far, technology heavyweights like Microsoft Corp, Intel Corp and Cisco Systems Inc have shown little inclination to rock the boat or express solidarity with Google.

Analysts say many foreign multinationals in fact may occasionally bend over backwards to appease Beijing, coveting the vast potential market in what will soon be the world's second-largest economy.