Expedia 2015 Annual Report Download - page 32

We process, store and use personal information, payment card information and other consumer data,
which subjects us to risks stemming from possible failure to comply with governmental regulation and
other legal obligations.
We may acquire personal or confidential information from users of our websites and mobile applications.
There are numerous laws regarding privacy and the storing, sharing, use, processing, disclosure and protection of
personal information, payment card information and other consumer data, the scope of which are changing,
subject to differing interpretations, and may be inconsistent between countries or conflict with other rules. We
strive to comply with all applicable laws, policies, legal obligations and industry codes of conduct relating to
privacy and data protection. It is possible, however, that these obligations may be interpreted and applied in a
manner that is inconsistent from one jurisdiction to another and may conflict with other rules or the practices of
the companies. Any failure or perceived failure by us, or our service providers, to comply with the privacy
policies, privacy-related obligations to users or other third parties, or privacy related legal obligations, or any
compromise of security that results in the unauthorized release or transfer of personally identifiable information,
payment card information or other consumer data, may result in governmental enforcement actions, litigation or
public statements against the company by consumer advocacy groups or others and could cause our customers
and members to lose trust in the company, as well as subject us to bank fines, penalties or increased transaction
costs, all of which could have an adverse effect on our business.
The regulatory framework for privacy issues worldwide is currently in flux and is likely to remain so for the
foreseeable future. Practices regarding the collection, use, storage, transmission and security of personal
information by companies operating over the internet have recently come under increased public scrutiny. The
U.S. Congress and federal agencies, including the Federal Trade Commission and the Department of Commerce,
are reviewing the need for greater regulation for the collection and use of information concerning consumer
behavior on the internet, including regulation aimed at restricting certain targeted advertising practices. U.S.
courts are also considering the applicability of existing federal and state statutes, including computer trespass and
wiretapping laws, to the collection and exchange of information online. In addition, the European Court of
Justice’s invalidation of the U.S.-EU Safe Harbor Framework could make it more difficult for us to transfer data
outside of the European Union for processing and the European Union’s reforms to its existing data protection
legal framework, which may result in a greater compliance burden for companies, including Expedia, with users
in Europe and increased costs of compliance. Finally, countries in other regions, most notably Asia, Eastern
Europe and Latin America, are increasingly implementing new privacy regulations, resulting in additional
compliance burdens and uncertainty as to how some of these laws will be interpreted.
We rely on the performance of highly skilled personnel and, if we are unable to retain or motivate key
personnel or hire, retain and motivate qualified personnel, our business would be harmed.
Our performance is largely dependent on the talents and efforts of highly skilled individuals. Our future
success depends on our continuing ability to identify, hire, develop, motivate and retain highly skilled personnel
for all areas of our organization. In particular, the contributions of Barry Diller, our Chairman and Senior
Executive, and Dara Khosrowshahi, our Chief Executive Officer, are critical to the overall management of the
company. Our future success will depend on the performance of our senior management and key employees.
Expedia cannot ensure that it will be able to retain the services of Mr. Diller, Mr. Khosrowshahi or any other
member of our senior management or key employees, the loss of whom could seriously harm our business.
Competition for well-qualified employees in certain aspects of our business, including software engineers,
developers, product management personnel, development personnel, and other technology professionals, also
remains intense.
Our continued ability to compete effectively depends on our ability to attract new employees and to retain
and motivate our existing employees. If we do not succeed in attracting well-qualified employees or retaining or
motivating existing employees, our business would be adversely affected. We do not maintain any key person
life insurance policies.
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