Paypal had nothing to do with taxes, and in fact was Eliot Spitzer in new York's baby, not the US so its different there.
This is very very old news actually. Yahoo and Google stopped taking such adds more than three years ago. Now they accept a fine, without admitting wrongdoing, for that activity.
The DOJ has targeted US companies many times before, the Travel Channel for one, but they sent letters to thousands of places a few years ago saying they could be risking prosecution.
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