Murdoch's tabloid hit by advert backlash

Media mogul Rupert Murdoch controlled weekly tabloid News of the World today has come under fresh attack in Britain’s House of Commons even as several advertisers in the paper have either threatened or threatening to withdraw their advertisements after fresh details emerged about the phone hacking cases in which the paper have been involved.

These phone hacking cases, for which the tabloid has been attacked now dates back to certain murder cases in 2002 and the London terror bombing on July 7, 2005, in which the paper’s reporters have allegedly tapped into the victims’ phone to get news reports. There have also been charges against reporters in this paper who have allegedly bribed police officers for exclusive news reports.

The attack on the paper has also led to leading advertisers either withdrawing or threatening to withdraw their advertisements, some in the forthcoming edition on Sunday while other holding back their advertisements until investigations are completed.

Car maker Ford in the UK Lloyds Banking Group, retailer Co-operative Group, Virgin Holidays and French car maker Renault have already said that they will not issue advertisements in the forthcoming Sunday edition of the paper, while several other including retail major Tesco and bank Halifax have said that they will take a decision based on the police investigation that has already begun. The possible financial loss to News of the World, following the withdrawal of the advertisements could not be estimated for now.

While Prime Minister David Cameron has called for a public inquiry into the phone hacking case, apart from a simultaneous police investigation, the opposition Labour party is also demanding that the Murdoch’s plans to acquire additional stake in broadcaster BSkyB be referred to UK’s Competition Commission. Labour leader Ed Milliband, in a the House of Commons debate today urged the Prime Minister to look beyond technicalities in the interest of British media and public and refer News International’s bid to gain full control of BSkyB to the Competition Commission.

There have also been demand for the resignation of News International CEO Rebecca Brooks who was the editor in chief of News of the World, when the alleged phone hacking took place. It may recalled that in January 2011, David Cameron’s director of communication

Andy Coulson was forced to resign following the continued investigation into the phone hacking case that had also cost him his job as editor of News of the World in 2007.