Australian media regulators would take an active interest in attempts by News Limited to increase its stake in Foxtel.
Problems facing media moguls Rupert and James Murdoch in the United Kingdom and the United States have yet to have an impact in Australia.
But if recent speculation is true that News Limited might be a buyer for James Packer’s 25% Foxtel stake, Murdoch could find himself in a forest of acronyms as various regulatory agencies – the Australian Consumer and Competition commission (ACCC), the Australian Communications and Media Authority (ACMA) and the Foreign Investment Review Board (FIRB) – take an active interest.
The continuing storm over the handling of the UK phone hacking scandal has seen a British parliamentary committee find Murdoch senior is not a fit and proper person to run a multinational media company.
The phone-hacking and police bribery scandal has led to more than 40 arrests in Britain and to a Sky news reporter admitting to hacking emails in pursuit of a story.
These revelations have also led to low-level investigations of News operations in the United States. In July last year, the FBI was reportedly opening an investigation of allegations that News reporters may have hacked the phones of victims of the 9/11 terrorist attack in New York and Washington DC.
There is no recent information to confirm that any investigation is on-going in the US. However, American politicians – always on the look out for a media opportunity – have signaled they are taking a keen interest in the British parliamentary report and the Leveson inquiry. A Washington DC ethics lobby group has also written to the US Federal Communications Commission seeking an inquiry into Murdoch’s control of the Fox network.
Citizens for Responsibility and Ethics in Washington (CREW) want the FCC to revoke Foxtel’s broadcasting licences. A US senator has also written to the chair of the Leveson inquiry seeking any information that might suggest American laws have been broken by News journalists.
Even is there is no illegality, Murdoch does face some problems in the US. Under American law, the finding that he is not a fit and proper person to run a business in the UK can be used to trigger an inquiry in the USA.
These ongoing worries are more than an embarrassment to the octogenarian patriarch; they are a debilitating overhang that could ultimately affect the fate of News Corporation – the parent company that manages the family’s global media business interests, including News Limited in Australia and News International in the UK. For example, BSkyB shares took a hit on UK markets after the email hacking story came to light. Read the rest of this entry »