More News of The World hacking allegations

[Crown]

I really liked this editorial on the BBC, and thought that some others might appreciate to read it as well;

Murdoch: the network defeats the hierarchy
Paul Mason Economics editor, Newsnight

The Murdoch empire fractured, a Conservative prime minister attracting bets on his resignation, the Metropolitan Police on the edge of yet another existential crisis and the political establishment in disarray.

A network of subversives would have counted that a spectacular result to achieve in a decade, let alone in a single week. But it was not subversives that achieved it - the wounds are self-inflicted.

As the News of the World scandal gathered momentum, it became clear, by midnight on Thursday, that this was not just the latest of a series of institutional crises - the banks, MPs expenses - but the biggest. For this one goes to the heart of the way this country has been run, under both parties, for decades.

It is like a nightmare scripted by Noam Chomsky and Slavoj Zizek: key parts of the political machinery of Britain are wavering.

The strength of the Murdoch newspaper and TV empire was that it occupied the commanding heights of a kind of journalism that dispenses power, intimidates and influences politicians and shapes political outcomes.

The other rival power node is Jonathan Harmsworth's Daily Mail and General Trust - which sets the agenda for all other news media in the UK but lacks the global reach.

Conrad Black's Daily Telegraph once occupied the third peak, but in terms of influence has been a shadow of its former self in terms of influence since the old proprietor went to jail, and then - under new owners - broke the MPs' expenses scandal.

The primary function of these journalistic centres of power is to dispense approval or disapproval to politicians. A News International journalist is reported to have said to Labour leader Ed Miliband: "You've made it personal with Rebekah so we're going to make it personal with you."

That is the kind of power that, until about 1500 on Thursday, journalists in that circle could wield.

'Manufacturing consent'

But not any more: for all the difficulties Mr Cameron had with the immediate question - of judgement over the employment of Andy Coulson; of what did he ask and when - it is clear that he intends to make a strategic break with the press barons. Likewise, Mr Miliband had already burned his bridges.

If Britain's senior politicians are serious about that break, then it will signal - without a single law being passed - a major change in the country's de-facto constitution.

In economics journalism, we have learned to study what the Financial Times writer Gillian Tett calls "the social silence": the subject that everybody at high-class cocktail parties wants to avoid.

After Lehman Brothers collapsed, we realised that the unasked question had been the most important: "on whose books do the increasingly toxic debts of the housing market stand?" The answer was "in the shadow banking system", but we only knew it existed when it collapsed.

The political equivalent of that question is the one everybody has been asking journalists and politicians this weekend: why do all politicians kow-tow to Mr Murdoch; what is it that makes them incapable of seeing the moral hazards of the relationship?

Nobody outside the Murdoch circle knows the full answer, but I suspect it is quite prosaic: like the Wizard of Oz, Mr Murdoch's power derived from the irrational fright politicians took from his occasional naked displays of it. The Kinnock "light bulb" headline was probably the signal moment. He was powerful because people believed he had the power, and that editors like Mrs Brooks and Mr Coulson probably had a file on everybody bigger than MI5's, and so you should never, ever, cross them.

Now, there is a school of social theory that has a name for a system in which press barons, police officers and elected politicians operate a mutual back-scratching club: it is termed "the manufacturing of consent".

Pioneered by Edward Herman and Noam Chomsky, the theory states that essentially the mass media is a propaganda machine; that the advertising model makes large corporate advertisers into "unofficial regulators"; that the media live in fear of politicians; that truly objective journalism is impossible because it is unprofitable (and plagued by "flak" generated within the legal system by resistant corporate power).

At one level, this week's events might be seen as a vindication of the theory: News International has admitted paying police officers; and politicians are admitting they have all played the game of influence ("We've all been in this together" said Cameron, disarmingly). The journalists are baring their breasts and examining their consciences. The whole web of influence has been uncovered.

Market logic

But what challenges the theory is first, the role of the social media in breaking the old system. Large corporations pulled their advertising because the scale of the social media response allowed them to know what they are obsessed with knowing: the scale of the reputational threat to their own brands.

We do not yet know the scale of the Twitter and Facebook campaign on companies to pull their ad spend. A sense of it can be gleaned by the 150,000 submissions to Ofcom over the BSkyB takeover.

It was the present and future threat to advertising revenue and to investment that forced Mr Murdoch to kill the News of the World.

As Mrs Brooks told the journalists, she has "had sight of the future" on this: she and James Murdoch know the full scale of what is to be revealed about the NOTW, and may have judged that it would lead, inevitably, to the total collapse of its ad revenue as any criminal proceedings played out in court.

Those bemoaning the "unnecessary" closure of the NOTW ignore the market logic. Even if the guilty parties had long ago moved on, the NOTW was essentially the same product.

The current senior management of NI are having to admit to post-crime "errors of judgement" revolving around their attempts to pay hush-money to the perpetrators and failure to investigate.

Given what may now happen in the courts, it had to go as a brand to prevent gangrene to the whole of Newscorp: the Church of England's investment fund has demanded the sacking of senior NI managers with immediate disinvestment in the entire Newscorp group as the sanction.

Though Twitter played its part, as in Egypt it was the interplay between social media responses and the mainstream television networks that toppled the giant.

If the BBC, ITN and Sky had - like Egyptian state TV on 25 January - just ignored the furore, Mrs Brooks and Mr Cameron may, even now, have been sitting down to Sunday lunch somewhere in Oxfordshire.

But the UK broadcast media has - unlike in the US - effective regulation. Instead of a culture of partisanship there is a culture of impartiality. There are infuriating (for those who work here) checks and balances. And there is a regulator as well as "self-regulation".

I would add, even the most "constructed" of TV and radio journalism looks natural and spontaneous compared to the machine-written prose of tabloid newspapers: I have become convinced that the Facebook generation, when it reads such newspapers at all, does so ironically, much as it watches Big Brother. That is, even though you can make a business model out of selling scandal sheets about the famous, you cannot manufacture consent with it anymore.

In addition, even as the tabloid press has money out of the "sexploits" of the famous, mainstream TV drama - including that produced by Mr Murdoch's studios - has come to revolve around a single theme: the supposed rampant corruption of the entire political, media, police and legal systems.

Once it was only at places like the National Theatre, with plays by David Hare and Howard Brenton, where you could see such stories aired. (Hare's Pravda, about Murdoch's takeover of the Times, is worth re-reading; the script was sent by the playwright to the culture secretary as a submission in the BSkyB case.) Now it is everywhere, from the Batman movies, to The Matrix, to the Bond movies - leave aside series like State of Play.

It has been remarked (by Richard Bacon, I think) that these scandals are like The Wire, working series by series through every institution. But the last series of the Wire is five years old. We know the whole story already.

Nobody under the age of 50 is remotely surprised to see a man once trusted to run the information operation of the British government arrested, or to see the Met admit that "a small group of officers" took payment.

Institutions weakened

Finally, the political influence that was supposed to stop the system crumbling, itself has crumbled. We are told Tony Blair pleaded with Gordon Brown to call off Tom Watson MP from his crusade over the original hacking allegations. It did not work.

Tom Baldwin, Ed Miliband's spin-doctor purposely selected from the Murdoch empire to hone Labour's message in the direction of Wapping, warned Labour "not to conflate phone-hacking and BSkyB". Mr Miliband's Bloomberg speech on Friday contradicted that approach.

One part of the Chomsky doctrine has been proven by exception. He stated that newspapers that told the truth could not make money. The Guardian, whose veteran reporter Nick Davies led the investigation, is indeed burning money and may run out of it in three years' time.

But a combination of the Guardian, Twitter and the public-service broadcasters, including Sky News, proved stronger than the power and influence of Rupert Murdoch, and for now the rest of Fleet Street has joined in the kicking.

(It should be said here that the Daily Telegraph's role in the exposure of the MPs expenses scandal laid the groundwork for this moment. The Telegraph proved you can attack major sections of the political elite, who had assumed impunity, and win.)

Now three institutions stand weakened: Mr Murdoch is facing the collapse of his BSkyB bid; the Conservative Party, cut adrift from him, faces a moment of internal reappraisal; and in the cappuccino joints around New Scotland Yard there is apprehension over whether the Met can survive another systemic kicking so soon after the MacPherson report.

Of all these institutions, it is the one with least resilience among the mass of people that stands in greatest danger. The Conservative Party has branches, summer fetes, jumble sales and social roots going back centuries; the Met is, tonight, dressed in its stab vests and fuelled by stale McDonald's, dealing with traumatised victims of urban mayhem on housing estates few politicians would dare to visit after dark.

But Rupert Murdoch's resilience relies on the few handpicked lieutenants and family members holed up in London and New York. It is a classic "Weberian hierarchy" - a command structure stronger vertically than horizontally.

Six months ago, in the context of Tunisia and Egypt, I wrote that the social media networks had made "all propaganda instantly flammable". It was an understatement: complex and multifaceted media empires that do much more than propaganda, and which command the respect and loyalty of millions of readers, are now also flammable.

Where all this leaves Noam Chomsky's theory I will rely on the inevitable wave of comments from its supporters to flesh out.

But the most important fact is: not for the first time in 2011, the network has defeated the hierarchy.

Some good pictures embedded in the article for those that follow the link, and there really are some choice parts of the article which resonate with me, but I've left them unhighlighted just to see if others pick up some of the same points.

[madd0ct0r]

Can Murdoch's empire be descirbed as an institution?

An institution has long term durability. I've never heard it referred to as more then a company (and an empire, but they fall)

[Crown]

Can Murdoch's empire be descirbed as an institution?

In and of its self, no. But the article is showing the entanglement between the Fleet Street rags, the Met and Parliament. The first might not qualify for the moniker of institution, but the later two surely do. As he says, the following chain of events would be an anarchists wet dream; "The Murdoch empire fractured, a Conservative prime minister attracting bets on his resignation, the Metropolitan Police on the edge of yet another existential crisis and the political establishment in disarray." and as he goes to point out, this was all self inflicted.

Fleet Streets rags (which add nothing to any public debate) exist to sell papers, they engaged in practices which were morally bizarre in order to do this, the Met was paid off for information and then completely bungled the investigation, and government either out of fear or necessity or stupidity was in bed with these rags. The way the whole thing came crashing down is delightful, just need the BSkyB deal to fall through now, and I'll be completely made up.

[SpaceMarine93]

Hacking phone calls of prominent people like Gordon Brown, hiring con men to help them extract personal info from police, hospitals and banks, and even going as far as to apparently engage in corruption by paying important people who has inside info of certain professions to provide information, such as trying to bribe a policeman in New York to provide them information concerning the Twin Towers attack during 9/11 Terrorist attacks.

It was clear that the incident is incredibly serious, with the depth of the crisis revealed when Murdoch, in an unexpected move, decided to shut down News of the World, the oldest British newspaper publisher in the UK with over 168 years of history. He does it while defending the management of any wrongdoing. Already the UK government had expressed outrage at this scandal, and is actually calling Murdoch and his son to a hearing to explain their company's action.

If you guys didn't know, it seems that even the British police are afraid of Murdoch, when a rumor emerges that during a previous investigation of a previous News Corporation scandal, five investigators discovered that even their phones are tapped by News Corporation branches, and had apparently try to obstruct investigation out of fear that their private lives would be exposed by them

Meanwhile, other News Corporation branches worldwide are facing similar accusations, with an American politician already calling to start investigation on News Corporation's potential illegal activities in the US. And BBC says the scandal is spreading across the Atlantic. Whether the accusations are true, or not, it appears that Murdoch and News Corporation are in one heck of a time.

We should be asking, really, questions such as: Is News Corporation really guilty of their accused crimes? Could they had done something like this? And if so, what are the possible repercussions on both News Corporation and the world in terms such as journalism, politics, social etc. out of this potentially epic scandal? Could Murdoch, his son and the rest of the Management be brought to justice if they are guilty or would they somehow get away with it, either through proving their innocence or dirty means?
How is this going to affect Murdoch's annexation of Sky Broadcasting? Why had the governments, or anyone in particular, failed to prevent this?

[PS: Stas Bush, you could delete my other thread.]

[DaveJB]

Looks like the allegations are moving onto the other Murdoch newspapers now. In particular, The Times (traditionally been seen as the "least bad" of Murdoch's papers), who illegally obtained some of Gordon Brown's financial information. They're claiming there was nothing wrong with doing so however, and that they had to investigate the fact that... Brown purchased an apartment that was once owned by Robert Maxwell.

The funny thing is that for the last twenty years, Maxwell has been held up as the British newspaper equivalent of Satan by just about every newspaper outside of the Daily Mirror and its stablemates. Any halfway intelligent person could have seen the hypocrisy involved in such claims, but it's just now becoming apparent just how hypocritical Maxwell's former rivals have been.

[SpaceMarine93]

But what can we do about it?

[Dartzap]

But what can we do about it?

Take a leaf out of the Scouse Vengeance Handbook and boycott the papers? Won't happen, I know, but as money is the only thing that matters.....

[Dartzap]

Hohohohoho! Murdochs bid for BSkyB has been withdrawn! His shareholders won't be happy for that!

[Dartzap]

Beeb

News Corp withdraws bid for BSkyB

Rupert Murdoch's News Corporation has announced that it is dropping its planned bid to take full ownership of satellite broadcaster BSkyB.
The move came as the House of Commons prepared to vote for a motion supported by all major party leaders calling on Mr Murdoch to scrap the bid.
It follows a scandal over phone hacking at News Corp's UK newspaper group.News Corp deputy chairman Chase Carey said the bid had become "too difficult to progress in this climate".

The scandal has already led to the closure of the UK's biggest-selling newspaper, the News of the World.
Market reaction

"We believed that the proposed acquisition of BSkyB by News Corporation would benefit both companies, but it has become clear that it is too difficult to progress in this climate," said News Corp deputy chairman and president Chase Carey in a statement.

"News Corporation remains a committed long-term shareholder in BSkyB. We are proud of the success it has achieved and our contribution to it."
BSkyB's share price briefly dropped following the announcement, taking it down 4% for the day, before recovering.

The company's share price has fallen some 20% since peaking at 850p earlier this month, and is now trading at a level not seen since News Corp first announced its bid plans in June last year.

Following News Corp's announcement, BSkyB chief executive Jeremy Darroch said: "We remain very confident in the broadly based growth opportunity for BSkyB."

'Huge humiliation'

A spokesman for Prime Minister David Cameron welcomed the news: "As the prime minister has said, the business should focus on clearing up the mess and getting its own house in order."

The Labour leader, Ed Miliband, called it "a victory for people up and down this country who have been appalled by the revelations of the phone hacking scandal and the failure of News International to take responsibility"

Liberal Democrat deputy leader Simon Hughes said that "the sun is now setting on the Murdoch empire".
The BBC's business editor Robert Peston said: "It's a huge humiliation. This was [News Corp's] biggest investment plan of the moment. It was one of the biggest investments they've ever wanted to make.

"It is an extraordinary reversal of corporate fortune... And questions will now be asked whether this is the full extent of the damage to the empire."
News Corp already owns 39% of BSkyB, but may be compelled to give up even this minority stake if it is deemed not to be a "fit and proper" by regulator Ofcom following the conclusion of current police investigations.

Robert Peston added there had been "a lot of speculation" that Mr Murdoch might now want to sell his UK newspapers, but the current state of the industry made them less attractive to potential buyers."The question is, who is going to pay him the price that they are worth? He will not want to sell those papers at a loss."

Public inquiry

Mr Cameron has asked Lord Justice Leveson to oversee a public inquiry into the News of the World scandal and media regulation.
In a statement to the Commons, he said the inquiry would begin as "quickly as possible" and would be in two parts - an investigation of wrongdoing in the press and the police, and a review of regulation in the press.

The judge will have powers to call media proprietors, editors and politicians to give evidence under oath, the PM said.
Mr Cameron said those who sanctioned wrongdoing should have no further role in running a media company in the UK.

He said Lord Justice Leveson, assisted by a panel of senior independent figures, would make recommendations for a better way of regulating the press which "supports their freedom, plurality and independence from government but which also demands the highest ethical and professional standards".
He will also make recommendations about the future conduct of relations between politicians and the press.

Mr Cameron told MPs he would require all ministers and civil servants to record meetings with senior editors and media executives to help make the UK government "one of the most open in the world".

Mr Miliband welcomed the proposal, arguing it must be imposed retrospectively, so that he and Mr Cameron publish all details of meetings with media executives dating back to the last general election.

The prime minister was previously criticised for meeting Rupert Murdoch, head of News Corporation, in Downing Street soon after the election, because Mr Murdoch did not walk through the front door.

Newspapers which did not support the government ran stories of "secret meetings".
Earlier at prime minister's questions, Mr Cameron said a "firestorm" was engulfing parts of the media and police, and those who had committed offences must be prosecuted.

Mr Miliband said it was an insult to the family of murdered schoolgirl Milly Dowler, whose phone was allegedly hacked, that Rebekah Brooks was still News International's chief executive.
Mr Cameron responded: "She was right to resign, that resignation should have been accepted. There needs to be root and branch change at this entire organisation.

"What has happened at this company is disgraceful - it's got to be addressed at every level."
In other developments:
News International's legal manager Tom Crone, who primarily worked at the News of the World and on the Sun, has left the company
The Sun has defended its story revealing Mr Brown's youngest son Fraser had cystic fibrosis. It has released a video of the man it says was the source - the man's face is not revealed and his voice is disguised to protect his identity

The prime minister met the parents of Milly Dowler, after which they welcomed news of the phone hacking inquiry
The Australian arm of Mr Murdoch's media empire is to investigate all payments made to contributors since 2008
In the US, Senate Commerce Committee chairman Jay Rockefeller called for an investigation into whether phone hacking targeted any American citizens and whether journalists working for News Corp had broken US law

Shares in News Corp have fallen 14% since 4 July, wiping about $5bn off the company's value
Meanwhile, Labour's communications chief Tom Baldwin is facing renewed questions over claims he handled private information which was gained illegally during his years at the Times newspaper, another News International publication.

The former Conservative deputy chairman Lord Ashcroft makes the allegations in a blog posting on ConservativeHome, which he owns. Mr Baldwin has not responded to the claims..

Couldnt happen to a nicer chap.

[Pelranius]

Assuming that News Corps doesn't make a bid again in a couple of years after this whole brouhaha. Though Rupert might not be around to see it.

[TC27]

What a dramatic week for British politics and media - I have a feeling we havent seen the end of this yet though - rumour is Murdoch wants to unload ALL his newspapers to buyers as he is far more interested in TV over print media.

If NI journalists hacked 9/11 voicemails then the dogs will surely be unleashed in the US which really will be interesting.

[weemadando]

But, can Fox News carry enough power still to bury and spin it in daddy Murdoch's favour.

[SpaceMarine93]

It is very uncertain how Murdoch would go through this and survive in what state. On one hand, Murdoch had so much economic, political and media influence now he could probably get the governments to drop charges in exchange for a lot of benefits which he could provide at minimal costs. He is never considered the King-Maker in the game of British Politics for nothing. Then again, he probably won't be able do anything about it and his empire would fall apart in less than a year. I expect him to nearly crack up like Bill Gates during the near Microsoft breakup of the late 1990s by the end of this crisis, at the least.

Either way, this scandal is causing his empire to now sit on the brink. His company is going to get kicked off British soil. Australia is starting to look up his newspaper branches there as well. And I cannot possibly imagine how bad America would react if the allegations of him taping into the phones and extracting information through unethical means from people such as 9/11 attack victims families, politicians, etc. is all true.

So tell me: if his empire does fall apart, how would it affect the media and the image of media in general? How would it affect politics and society in UK, Australia and the US? What would happen to Fox News, Sunday Times and other branches without his hands on them? What's going to happen to his family?

[Dartzap]

The Murdochs are getting a visit from the Serjeant of the House (sadly without his mace) to ensure they attend the select committee next week. They previously claimed they were 'unavailable'

[Dartzap]

Just saw on C4 news that the FBI are to commence investigating the hacking as well.

[Crazy_Vasey]

For a time in england it was legal to hack phones up to 2000 when it became illegal.

I'm no lawyer but I would expect this to fall under the Computer Misuse Act of 1990 and the Data Protection Act of 1998.

[FSTargetDrone]

Just saw on C4 news that the FBI are to commence investigating the hacking as well.

Quite so:

FBI Launches Investigation Into News Corp. 9/11 Hacking Allegations

By Lucas Shaw at TheWrap

Thu Jul 14, 2011 9:20am EDT

The Federal Bureau of Investigation opened a preliminary investigation Thursday regarding allegations that News Corp. journalists attempted to hack the phones of victims of the Sept. 11 attacks, the New York Times and Wall Street Journal are reporting.

The decision comes a day after Rep. Peter T. King, a Republican from New York, sent a letter to FBI director Robert Mueller insisting the bureau open such an investigation. The FBI told TheWrap its policy is to neither confirm nor deny reports of investigations.

News Corp. Chairman and CEO Rupert Murdoch defended his company's response to the scandal in the Wall Street Journal Thursday, the first time he has granted an extensive interview since the scandal reignited last week.

The Journal, owned by News Corp., quotes Murdoch as saying that his company has handled the crisis well in every way possible, and that his son James acted as quickly as he could to rectify what has happened.

James, who as chairman of News Corp. Europe and Asia oversees the publications initially implicated, has come under a great deal of scrutiny for his response to the allegations. Not only has the company has consistently defended News International chairman Rebekah Brooks, but it has yet to launch an extensive internal investigation. Rupert Murdoch says that will chance in the same Journal interview, promising an investigation into every allegation.

The claim that journalists working for the now-shuttered News of the World tried to obtain the phone records of 9/11 victims has been widely reported, but no concrete evidence has appeared.

No target is shocking given the extent of alleged hacking in England, ranging from the phone of murdered teen Milly Dowler to the victims of the train bombing in London.

Details of the investigation are not yet known, though the Times reported it will be handled by a pair of FBI squads in the New York office.

News Corp. share prices have dropped about 3 precent since news of the investigation leaked.

This may be the first in a long line of legal challenges in the U.S. as four Senators asked the Department of Justice and Securities and Exchange Commission to launch investiations as well. The offices of the Senators Barbara Boxer and Frank Lautenberg have yet to respond to calls.

With inquiries launched in England and the U.S., Australia may be next. Prime Minister Julia Gillard said Thursday that she would be open to the possilbity of some media-related investigation.

[Pelranius]

So Peter King finally does something worthwhile, I guess.

[Crazedwraith]

Brooks has resigned.

Rebekah Brooks, chief executive of News International, has resigned, the company has confirmed.

Her departure follows days of growing pressure for her to step down as the phone hacking crisis grew. News Corporation chairman Rupert Murdoch had been resisting the calls to remove her.

Ms Brooks was editor of the News of the World when murder victim Milly Dowler's phone was hacked.

She had agreed to attend Tuesday's hearing of the Commons media committee.

I wonder what else Murdoch can do deflect the pressure now if this doesn't put the scandals the bed.

[TC27]

Brooks gone which was unthinkable just a few weeks ago....if she had gone earlier she may have saved the NoTW.

The ball hasnt stopped rolling yet I imagine James Murdoch is next in the firing line.

[Luke Skywalker]

Rupert Murdoch's evil empire is taking a hit. Let's hope the scumbag gets his ass thrown in jail. Oh, and I wonder how Fox News is dealing with this. How are they going to defend their tyrant this time?

[Crossroads Inc.]

Rupert Murdoch's evil empire is taking a hit. Let's hope the scumbag gets his ass thrown in jail. Oh, and I wonder how Fox News is dealing with this. How are they going to defend their tyrant this time?

Mostly by doing what they always do where there is inescapable bad news.
Ignore it.

Seriously I've watched Fox off and on the past few days and seen NO report of this AT ALL.

[Luke Skywalker]

Rupert Murdoch's evil empire is taking a hit. Let's hope the scumbag gets his ass thrown in jail. Oh, and I wonder how Fox News is dealing with this. How are they going to defend their tyrant this time?

Mostly by doing what they always do where there is inescapable bad news.
Ignore it.

Seriously I've watched Fox off and on the past few days and seen NO report of this AT ALL.

Yeah, I noticed that. So much for "fair and balanced", fucktards.

[Luke Skywalker]

Apologies for the double post.

Apparently, during Commercial time Fox News's anchors were joking about who was going to do the report over "the incident". None of them looked happy to do it, fearing that their master will slap them for betraying the conservative motherland. Interestingly enough, The Simpsons's new episode coincidentally happened to jab at Murdock, and aired recently.

That being said, should we investigate Fox over this? I find it doubtful that Murdock was only engaging in foul play in his tabloids; if he does in one of his puppets, he's likely to be doing it in his other projects too.

[Alkaloid]

Interesting development that I didn't actually expect to happen. Rebekah Brooks has been arrested.

http://www.theage.com.au/world/former-m ... 1hkhr.html

FORMER Murdoch chief executive Rebekah Brooks was last night arrested by police on charges of conspiring to intercept communications and corruption allegations, thought to be payments to police.

Police questioned the former News International boss at a London police station where she was arrested and detained. She was questioned by police from two separation investigations, the one into hacking, Operation Weeting, and Operation Elvedon, which is looking into bribery of police.

A spokesman for Mrs Brooks said she had been told on Friday, after her resignation, that she would be arrested.
Advertisement: Story continues below

Mark Lewis, the lawyer for Milly Dowler's family, said questions had to be asked about the timing of the arrest because Mrs Brooks had been due to be questioned by a parliamentary committee on Tuesday.

''Undoubtedly she will have the option of saying on Tuesday 'I'm sorry I can't answer that because I'm under police investigation','' he said. ''The timing stinks … It gives the impression that those questions can't be asked [now] … It looks deliberate.''

The House of Commons select committee had maintained that it would take care not to canvass material that affected any criminal investigations, and Mrs Brooks now appears to be protected by that.

Commentator Michael White of The Guardian, the paper that has led the phone-hacking exposes, told the BBC he thought this was a piece of grand-standing on the part of police trying to divert attention from serious questions about police behaviour that had dominated that morning's headlines.

''This is a bit of showbiz by the police,'' he said. ''The Met want to take the heat off themselves.'' He said this kind of behaviour had been seen in previous cases where police tried to over-compensate for previous failures to act: ''This is laying it on with a trowel.''

Mrs Brooks, formerly a favourite of Rupert Murdoch, resigned on Friday last week over the phone-hacking scandal. She edited the now-defunct News of the World newspaper during the period in which it hacked the voicemail of a murdered 13-year-old girl, Milly Dowler, and also edited The Sun, which actor Jude Law has accused of voicemail hacking. Mrs Brooks has denied any knowledge of hacking. She was on holiday when Milly's voicemail was intercepted.

Mr Murdoch's Australian newspapers include the Herald Sun and The Australian.

Former deputy editor of News of the World Paul Connew

said the timing of the arrest was surprising given her scheduled appearance before the committee. It followed the pattern of other potential suspects or witnesses, ''But I'm a bit surprised it happened before Tuesday … It begs the question of whether she will be much more inhibited in what she will say.''

News International made no comment. Rupert Murdoch was believed to be in his London flat working with lawyers to prepare for his appearance before the parliamentary committee on Tuesday. Police are expected to arrest up to a dozen more people in the next few weeks.

Meanwhile, British Opposition Leader Ed Miliband has called for Murdoch's British media empire to be broken up, saying it has ''too much power over British public life''.

Mr Miliband said he would push for cross-party agreement on new media ownership laws because the company's response to the News of the World phone hacking scandal was not enough to restore trust and reassure the public. ''I think we've got to look at the situation whereby one person can own more than 20 per cent of the newspaper market, the Sky [cable TV] platform and Sky News,'' he told The Observer newspaper. ''That amount of power in one person's hands has clearly led to abuses of power within his organisation. If you want to minimise the abuses of power then that kind of concentration of power is frankly quite dangerous.''

His remarks came as it emerged that the head of the parliamentary committee that is to grill James and Rupert Murdoch and Mrs Brooks this week has ties to two senior News executives.

Conservative MP John Whittingdale admitted he was an old friend of Rupert Murdoch's former top adviser, Les Hinton, and had links to Mr Murdoch's daughter Elisabeth. He had also been to dinner with Mrs Brooks.

In other developments:

■It was claimed Mrs Brooks had told Prime Minister David Cameron to dump plans to hire a former BBC journalist as his director of communications and to hire ex-News of the World editor Andy Coulson instead.

■The board of BSkyB scheduled a meeting on July 28 to discuss James Murdoch's future role.

■A police chief was revealed to have holidayed for free in a spa promoted by an ex-News of the World editor.

■English actor Jude Law is suing Rupert Murdoch's The Sun, claiming it hacked his phone.

■News International made a fresh apology for the phone-hacking scandal in national newspapers.

Further embarrassing Mr Cameron as he tries to distance himself from the Murdochs, it was alleged Mrs Brooks told Mr Cameron the role of his media adviser should go to someone who was ''acceptable'' to News International. The Mail on Sunday quoted unnamed Conservative Party and News International sources as saying the PM was told it would strengthen party ties with the company.

Read more: http://www.theage.com.au/world/former-m ... z1SNAolS00

If News knew about this beforehand (which wouldn't stun me) it might explain the sudden shift from 'cover Brooks sell everything else down the river' to her resigning.