Within a month after LinkedIn shutdown its localized version of China, an another American internet firm Yahoo has announced that it is ceasing its operations in mainland China, citing same reasons as by LinkedIn, saying -- "in recognition of the increasingly challenging business and legal environment".

Yahoo said it was ceasing its operations as of November 1.

Yahoo entered China in 1998 and in 2012 struck a deal with Alibaba Group to sell its stake in the e-commerce giant. The deal also saw Alibaba obtain the right to operate Yahoo China under the Yahoo brand for up to four years.

Yahoo China later shut its email service and web portal but the brand retained a global research and development center in Beijing until 2015, when it was shut down.

Chinese laws demand that companies operating in the country must hand over data if requested by authorities, making it difficult for Western firms to operate in China as they may also face pressure back home over giving in to China’s demands, according to CNBC.

In September, Apollo Global Management, Inc. completed the acquisition of Yahoo from Verizon Communication, for reportedly US$5 billion.

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