British Sky Broadcasting is “fit and proper” to retain its...
British Sky Broadcasting is “fit and proper” to retain its license despite the phone-hacking and other illegal shenanigans carried out by its owner News Group Newspapers (NGN), the U.K. Office of Communications said Thursday. Nevertheless, it came down hard on…
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News Corp. Chairman Rupert Murdoch’s son James, saying his conduct in relation to events at NGN “repeatedly fell short of the conduct to be expected of him as a chief executive officer and chairman.” However, Ofcom said, the evidence available to date isn’t enough to conclude that James Murdoch deliberately engaged in any wrongdoing. A company director is required to exercise reasonable care, skill and diligence in carrying out his functions, Ofcom said. “We consider James Murdoch’s conduct, including his failure to initiate action on his own account on a number of occasions, to be both difficult to comprehend and ill-judged.” The regulator also found no available proof that Rupert Murdoch or News Corp. acted inappropriately in relation to phone hacking, concealment or corruption by employees of NGN or News International. Sky’s compliance record in broadcasting matters in 2006-2012, which included James Murdoch’s stint as CEO, has been good, Ofcom said. During that time, Sky “continued to be a successful company.” James Murdoch is no longer chairman of the board, and his retention as a non-executive director doesn’t mean the broadcaster is unfit to have a license, it said. Nevertheless, Ofcom said, findings by the Leveson inquiry into phone-hacking and other unlawful activities, and the results of pending criminal proceedings, “could be relevant” to Sky’s performance of its duty. News Corp. said it’s pleased Ofcom found the broadcaster fit to hold its license and that it’s “proud of both News Corporation’s and James Murdoch’s distinguished record in facilitating the transformation of Sky into Britain’s leading pay television and home communications provider.” But the company disputed Ofcom’s comments about James Murdoch’s prior actions, saying they're “not at all substantiated by evidence."