The watchdog accused the company of "failing to respect the choice of Internet users who refused cookies on its main website and for not allowing users of its e-mail client to freely withdraw their consent to cookies."

The company is now reviewing the decision to decide on "appropriate next steps", Yahoo said, when contacted by Reuters.

($1 = 0.9206 euros)

(Reporting by Tassilo Hummel, Jaspreet Singh;Editing by Sudip Kar-Gupta)