Any weakening of News Corp's US operations could seriously damage Murdoch's empire, write PAUL FARHIin Washington and ANTHONY FAIOLAin London
THE PHONE-hacking scandal engulfing Rupert Murdoch’s British media operations is threatening to cross the Atlantic, with calls by several politicians for investigations into whether Murdoch’s News Corp violated US laws.
Following a British newspaper’s report that Murdoch’s London- based journalists had tried to tap into phones of victims of the September 11th, 2001, attacks, Democratic senators Jay Rockefeller, Barbara Boxer, Robert Menendez and Frank Lautenberg have urged federal agencies to examine whether any US phone accounts were hacked.
So far, there are no signs that that occurred.
The critics also included the first prominent Republican, Congressman Peter King, who slated Murdoch’s “yellow journalism” in a letter to FBI director Robert Mueller requesting an inquiry. King chairs the house committee on homeland security.
While the scandal has imperilled Murdoch’s British operations, leading to the withdrawal of his $12 billion offer for the country’s largest satellite television operator, BSkyB, so far it hasn’t touched his much larger and more profitable US holdings.
News Corp, based in New York, is primarily a US company and any impairment of its US operations could seriously damage the empire Murdoch has almost single-handedly assembled since inheriting two ailing Australian newspapers from his father in 1952.
Among others, News Corp's businesses include the Wall Street Journal,the New York Post,the networks Fox TV and Fox News Channel and 27 TV stations.
The scandal has led to media speculation that Murdoch’s US TV station holdings could be challenged under federal requirements that licence holders be of “good character”, but that seems a long shot.
Revocation of a broadcast licence by the Federal Communications Commission has been rare throughout its history, especially since the FCC deregulated its licensing requirements in the 1980s, said veteran communications lawyer Andrew Jay Schwartzman.
Further, the agency probably would examine only conduct involving the management of the stations in deciding on a licence challenge, not behaviour that took place in a foreign operation.
“The short answer is, based on what we know has happened so far, none of his licences are in jeopardy,” Schwartzman said.
Jay Rockefeller, chairman of the Senate commerce committee, is the first high-ranking American politician to weigh in on Murdoch’s troubles.
The West Virginia Democrat said he would “encourage” federal agencies to investigate whether News Corp employees violated any US privacy laws, especially relating to victims of the September 11th attacks.
“If they did, the consequences will be severe,” he said in a joint statement with Barbara Boxer.
Rockefeller and Boxer appeared to be responding to an article in the Daily Mirrorwhich reported that journalists from News Corp's defunct tabloid, the News of the World, had contacted an unidentified New York City policeman to get private phone records of British citizens who had died in the World Trade Center. The policeman was quoted as saying he declined to turn over any records.
The Mirror's report, however, has not been corroborated by any other news organisation nor confirmed by official sources.
Frank Lautenberg asked the Securities and Exchange Commission and justice department to investigate whether News Corp employees had broken a law prohibiting American companies from bribing officials abroad.
Journalists at the News of the Worldallegedly bribed British police officers to gain information, a potential violation of the US Foreign Corrupt Practices Act.
“Further investigation may reveal that current reports only scratch the surface of the problem at News Corp,” Lautenberg wrote.
Separate from News Corp's American media properties, the News of the Worldmaintained a Hollywood bureau and bragged about scoops involving American celebrities Lindsay Lohan and Britney Spears at the time it was hacking thousands of phones in Britain.
With the exception of King, Republican officials and their supporters have remained mostly silent about Murdoch, who last year directed a $1 million contribution to the Republican Governors’ Association on behalf of News Corp. At the same time, Fox News Channel has given the story scant coverage compared to rivals CNN and MSNBC.
The scandal has also given ammunition to liberal groups, such as Washington-based Media Matters for America, that believe Murdoch has used his US media assets to advance a conservative agenda. – ( Washington Postservice)