The agreement, subject to final approval of the terms, comes after intense hearings in 2006 before the Senate Human Rights and the Law Subcommittee chaired by Durbin. On July 21 Durbin said the subcommittee would like to see progress, and the companies appear to have delivered.

"This code of conduct would be one important step toward our shared goals of promoting freedom of expression and protecting the privacy of Internet users around the world," Durbin said. "I look forward to learning more about the details of this agreement and whether it will adequately regulate American companies operating in Internet-restricting countries."

A Dark Past

The 2006 hearings and subsequent pressure from organizations such as Amnesty International and the Electronic Frontier Foundation demanded that U.S. companies take a stand against online censorship, blocking access to information, and covert spying on Internet users. In the past, some U.S. companies have even provided technical equipment to help countries restrict access to the Internet.

The controversy accelerated last week after China attempted to limit Internet usage for Olympic visitors and amid concerns that activity on the Internet may be monitored by the Chinese government.

Initial reports are that the companies have agreed to protect identities, liberties and access to information. Provisions for the protection of data will also be a part of the final agreement.

All Bark, or is There Bite?

How they intend to implement such measures on foreign soil may be tricky, but it beats the cooperation Google and Yahoo provided to the Chinese government. When news of U.S. companies capitulating to foreign censorship came to light in the Senate hearings in 2006, pressure mounted and the agreement is an answer to that criticism.

Some observers are speculating that the agreement may include enforcement language, making it more than a statement of conduct. How provisions could be enforced is not clear, but according to the LA Times, Yahoo has set up an international fund to help dissidents and their families.

Amnesty International reports that censorship and restrictions are a problem worldwide. Besides China, Cuba, Iran and North Korea are actively engaged in restricting Internet freedoms.