As the judge said:

Where an out-of-state business solicits California customers and does business with customers living in California, California has an interest in ensuring that the out-of-state business does not discriminate against the California customers.

Just read (OK, skimmed parts) of the decision talked about here.  Very interesting.  Very broad decision by a federal judge sitting in diversity (deciding a case not because of federal law, but because the parties were from two different states), and finding that California’s civil rights laws (the Unruh Civil Rights Act) apply to an internet business doing business here.  It’s only a district court opinion, and the 81-page length is probably only justified by the probability of appellate litigation, but it’s a very interesting development, in a legal geek kinda way.