The head of News Corporation, Rupert Murdoch, has indicated he is preparing to “hit back” at what he describes as the “lies” directed towards his business.
The BBC and the Australian Financial Review have both made allegations that News Corp has been involved in sabotaging its pay television competitors.
Panorama reported that a News subsidiary, NDS, had recruited a hacker to acquire the smart card codes of ITV’s ONdigital, the major pay TV rival to News Corp’s Sky TV network.
The Financial Review reports, meanwhile, suggested News Corp’s Australian targets were Optus and Austar, the subject of a takeover bid from Foxtel.
While Mr Murdoch did not refer directly to the BBC or the Financial Review, he tweeted: “Seems every competitor and enemy piling on with lies and libels. So bad, easy to hit back hard, which preparing.
“Enemies many different agendas, but worst old toffs and right wingers who still want last century’s status quo with their monoplies [sic].
News Corp president Chase Carey also issued a terse statement, describing the BBC’s program as a “gross misrepresentation” of NDS’s activities.
“Panorama presented manipulated and mischaracterised emails to produce unfair and baseless accusations,” Mr Carey said.
“News Corporation is proud to have worked with NDS and to have supported them in their aggressive fight against piracy and copyright infringement.”
It was the second time News Corp had denied the BBC allegations since the program aired.
NDS insists it has not sabotaged the commercial interests of any rival and says it recruited hackers to track and catch other hackers and pirates.
Federal Opposition communications spokesman Malcolm Turnbull says News Limited is free to take legal action over the allegations.
“News Limited has the right of every person who has been defamed to go to court,” Mr Turnbull said.
“They can take proceedings in any jurisdiction where this material has been published and seek to have the matter determined and their name cleared.”
The Australian Federal Police says it has not received a referral to investigate allegations of corporate piracy in Australia’s pay TV industry.
On Wednesday, Communications Minister Stephen Conroy said the accusations were serious and that any claims of criminal activity by News should be referred to federal police.
The Greens want the competition watchdog to pause its consideration of the Foxtel-Austar takeover.
First published: 2012-03-29 03:34 AM
James Murdoch quits as BSkyB boss to spare blushes
Rupert Murdoch’s son says he didn’t want to become ‘lightning rod’ for criticism of satellite broadcaster
Dan Sabbagh
guardian.co.uk, Tuesday 3 April 2012 21.58 BST
James Murdoch: ‘I am determined that the interests of BSkyB should not be undermined by matters outside its scope.’ Photograph: Miguel Villagran/Getty Images
James Murdoch stepped down as chairman of BSkyB six weeks after giving up a similar role at News International, saying he “could become a lightning rod” for criticism of the satellite broadcaster, in the wake of the criticism of his handling of the News of the World phone hacking scandal.
The 39-year-old felt he needed to give up a position he loved to avoid the risk of being forced to quit should he be severely criticised by a forthcoming report from MPs into the phone hacking scandal, or if he were to trip up or be reprimanded when he gives evidence to the Leveson inquiry into press standards this month.
Writing to the board of BSkyB, the man seen as the heir presumptive to his father Rupert until last summer’s revelations about the hacking of Milly Dowler’s phone, said: “As attention continues to be paid to past events at News International, I am determined that the interests of BSkyB should not be undermined by matters outside the scope of this company.”
Although Murdoch will hang on to a non-executive directorship of BSkyB, the move caps a retreat by James to New York where he hopes to rebuild his career as News Corporation’s number three, behind his father and Chase Carey. Without the position at BSkyB his responsibilities at News for “international television” will be reduced to pay-television businesses in Italy and across Asia. Allies said that by stepping aside now, it was hoped he would retain “options” over his future.
James Murdoch is almost certain to be criticised by MPs on the culture, media and sport committee for not being aware that phone hacking was more widespread at the News of the World than originally admitted. But the committee is split on party lines over whether to accuse him of misleading parliament over what he actually knew. Other senior colleagues of Murdoch’s, including former chief executive Rebekah Brooks and former News of the World editor Colin Myler are expected to be criticised in the final report.
