The Australian Financial Review on Wednesday alleged that News Corp had used a special unit, Operational Security, set up in the mid-1990s, to sabotage its compeors, reinforcing claims in a BBC
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"These are serious allegations, and any allegations of criminal activity should be referred to the AFP (Australian Federal police) for
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Operational Security was a unit of News Corp's secure-encryption subsidiary NDS, which has
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News Corp, which this month sold NDS to Cisco Systems for $5 llion, said it accepted those assurances.
Its Australian arm, News
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"The story is full of factual inaccuracies, flawed references, fanciful conclusions and baseless accusations which have been
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NDS has faced several lawsuits over alleged piracy: one was dropped and the firm was largely cleared in the others, which News Limited
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NDS's Operational Security unit, staffed by former police and intelligence officers, used hackers to crack the codes of smartcards issued to customers of rival
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This cost News Corp's rivals millions of dollars,
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The Operational Security unit had originally been set up to hunt pirates targeting Murdoch's own operations but later turned into a dirty-tricks campaign to undermine compeors, it
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The BBC Panorama documentary broadcast on Monday alleged that NDS hired a consultant to post the encryption codes of ITV Digital, a rival of Murdoch's then Sky TV, on his
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Widespread piracy after the online publication of the codes contributed to the 2002 collapse of ITV Digital, which had been set up by the parties that later formed ITV, Britain's
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Australian police said they received a referral from UK police against the company in July last year, but declined to comment on whether that
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"The AFP is assisting the UK police with their inquiries," an AFP spokeswoman said.
SABOTAGE CLAIMS
UK regulator Ofcom is already
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"These allegations, if true, are the most serious yet and I am referring the matter to Ofcom, who have a duty to investigate as part of their
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"If what Panorama says is true, it suggests a global conspiracy to undermine a great British
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An Ofcom spokesman declined to comment on the specific allegations but said the regulator would consider "all relevant
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James Murdoch has also served as an NDS director.
NDS said in a statement: "It is wrong to
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News Corp said: "NDS has consistently denied any wrongdoing to Panorama and we fully
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The Australian Financial Review, citing a four-year investigation and a trove of internal NDS emails, said the piracy undermined the value of compeors like DirecTV in
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"NDS sabotaged business rivals, fabricated legal actions and obtained telephone records illegally," said
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A spokesman for News Limited, the Australian arm of News Corp, was not immediately available for comment on the
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News Corp owns 25 percent of Australia's top pay-TV firm, Foxtel, which is looking to take over rival Austar. Austar declined to comment on the report.
Foxtel said NDS
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British lawmaker Watson is known for his dogged questioning of James and Rupert Murdoch on their role in the phone-hacking affair, notoriously comparing James to a
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The committee has been due since early this year to present a report based on its investigations, which is expected to be
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Watson said the report was now unlikely to be published before the Easter holiday on April 8. He said the new
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"There's no suggestion anywhere that Sky or News Corp knew what NDS was doing," broadcaster and
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The Australian Financial Review's investigation involved 14,400 emails from a hard drive in a laptop used by Ray Adams, who was the European chief for NDS Operational Security from January
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The newspaper said Adams plotted a legal campaign in an attempt to ruin the reputation of a Swiss hacker, Jan Saggiori, who had evidence that NDS had sabotaged the products of
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News Limited said the
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"Saggiori admitted, under cross examination, hacking several
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The BBC's Panorama interviewed Lee Gibling, owner of a satellite hacking website, who said NDS funded the expansion of his site and had him
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NDS said it had never used or intended to use the site for any illegal purpose, and said it had paid Gibling for his expertise so that information from the site
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NDS also said it was common for companies in the pay-TV industry to discover one another's encryption codes - a view endorsed by Adam
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"It's possible they cracked them themselves in order to test the security of the algorithms," he
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"To compare yours against others, you have to test them and there's a chance you'll succeed."
ITV Digital was beset by issues from the start, including internal compeion
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"It's a complex picture, but to say that ITV Digital
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An industry source in Australia said hacking was a common problem in the 1990s
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NDS UNSCATHED
NDS was sued in a $3 llion lawsuit in 2002 by C Plus, which had
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C Plus dropped the action in 2003 when News Corp bought
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U.S. satellite TV provider EchoStar, which had tried to join the C Plus suit,
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This month, NDS was awarded $19 million in
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In Italy, a
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NDS said on Tuesday: "NDS wholly refutes the allegation that Mr Rossi acted illegally on behalf of NDS. NDS is not a defendant in the trial in Sicily or any other."