Why does American Billionaire Rupert Murdoch have so much influence over Britain? 

Why does American Billionaire Rupert Murdoch have so much influence over Britain? 

Rupert Murdoch is a name that has become synonymous with media influence worldwide. In Britain and the United States, he’s been closely involved with the establishment and political meddling. In the European Union, his publications have been fined for breaching EU data laws.

It’s a no-brainer he is a kingmaker, the Australian-born American has managed to amass an impressive media empire in the UK, with significant stakes in several newspapers, television channels, and other media outlets. However, Murdoch’s influence in Britain has not been without controversy, with many accusing him of being politically biased, sensationalist, and divisive. 

His influence in Britain has been damaging politically and culturally and despite attempts from governments to curb the individual powers of media moguls, Murdoch’s grip on British life is still firm.

Murdoch decided Brexit

Rupert Murdoch commands influence to the masses in the UK and many of his outlets have been accused of being politically biased. His media empire is so powerful and influential that it plays a significant role in shaping public opinion and as such he is influencing political decisions. 

The most notable example of Murdoch’s influence in British politics is the role his newspapers – The Sun and The Times – played in the Brexit referendum. Both newspapers were vocal supporters of Britain leaving the EU, and many believe that their coverage helped sway the public in voting to leave. 

Many years ago, journalist Anthony Hilton asked Murdoch why he was so opposed to the European Union.

He replied: “That’s easy. When I go into Downing Street they do what I say; when I go to Brussels they take no notice.”

When I go into Downing Street they do what I say; when I go to Brussels they take no notice

Rupert murdoch on why he’s against the EU

Murdoch’s media empire has been accused of giving favourable coverage to certain political parties and leaders, with critics arguing that this has undermined the impartiality of the media and eroded trust in democratic institutions. 

Erosion of social cohesion

Murdoch’s influence stretches far beyond politics, his influence is soaked into British culture, with his empire being accused of having a damaging cultural impact on Britain. 

His newspapers are often criticised for using sensationalist and inflammatory language to stoke up tensions between different cultural and ethnic groups. This has been seen as contributing to the rise of hate crimes and the erosion of social cohesion in Britain.

Back in 2014, Murdoch’s News Corp launched its UK version of Fox News but the conservative channel failed to gain significant traction and was taken off the air just three short years later. 

Talk TV is the British version of Fox News, with Piers Morgan playing Tucker Carlson’s role as a controversial opinionated radical

Fox News didn’t work in the UK for several reasons, the political culture in Britain is different from the US, with different values and priorities. so it failed to resonate with British audiences in the same way it does in the US. But that didn’t stop Murdoch, he recently launched the British version of Fox with Talk TV and used Piers Morgan as his controversial spearhead to launch the brand.

Fox News in the US is conservative and often controversial, with its recently sacked mouthpiece Tucker Carlson as a figurehead for the far-right. Famously Tucker Carlson commented on the Jan 6 Capitol Hill riots as peaceful and democratic demonstrations.

Murdoch couldn’t make Fox News work in the UK but by using similar language and tactics he did play a massive role in Britain leaving the EU. Though it’s worth noting that whilst Britain voted to leave the EU, it was not a landslide victory. In fact, the leave campaign won by only 51.9% of the vote against 48.1% who wanted to remain in the EU. 

Murdoch is credited for eroding journalistic ethics and profiting from speculation and scandals

Murdoch himself is known for his conservative and pro-Brexit views and is reported to have told the editors of his three British newspapers to support the leave campaign. His newspapers ran many articles and editors supporting Brexit and often used emotive language and anti-immigrant rhetoric to sway public opinion. 

Murdoch’s media clearly gave favourable coverage to the pro-Brexit politicians, including the former UKIP leader Nigel Farage and Boris Johnson – who Murdoch is known to have had a close relationship with. It has been reported that Murdoch played a role in helping Johnson become an editor at The Spectator magazine in the 1990s. 

It’s hard to determine the exact influence Murdoch has had over politics in Britain but he has undoubtedly played his role in creating divisions and exerting further control over British life and culture. 

Why does Murdoch have so much power? 

The power to shape public opinion has given him influence on political decision-making. Murdoch has curated relationships with political leaders and other powerful and influential people. It has allowed him to exert influence behind the scenes and further cement his power in Britain. 

The lack of diversity in the British media landscape has also played a role in Murdoch’s power. In recent years, there has been growing concern about the concentration of media ownership in the hands of a small number of individuals and corporations. This has led to calls for greater regulation and the promotion of media plurality. However, these efforts have so far been limited, and Murdoch and other media owners continue to hold significant power.

Curb Murdoch influence 

The UK government has tried to curb the influence of Rupert Murdoch over the UK’s media. In 2011, following the phone-hacking scandal involving Murdoch-owned newspapers, there was a public outcry and a subdued political backlash against Murdoch’s media empire. Apart from a political slap on the wrist, his empire has grown.

In response to the phone hacking scandal, the UK government set up the Leveson Inquiry, which investigated the practices of the UK press and made recommendations for reforming media regulation. 

The inquiry concluded that there had been a culture of illegal and unethical behaviour in some parts of the UK press, including Murdoch’s newspapers and recommended the establishment of a new independent regulator to oversee the press. 

But the implementation of the recommendations from the Leveson Inquiry has been met with backlash, with some critics arguing that they would stifle press freedom and give the government too much control over the media. Due to the backlash, progress on implementing the recommendations has been slow, and Murdoch continues to hold significant power and influence in the UK media. 

More recently, the UK government introduced new rules to increase media plurality and regulate the concentration of media ownership. In 2017, the government introduced rules that require media mergers to be subject to greater scrutiny by regulators, with a particular focus on the impact on media plurality. These rules are designed to prevent media companies, including Murdoch’s News Corp, from gaining too much control over the UK media. It’s not known how effective these rules will be in practice. 

Murky tax status 

Trying to work out why Rupert Murdoch appears to get away with so much in the UK is hard. But there have been whispers over tax avoidance schemes in the UK. 

Murdoch’s tax affairs are private so it’s not known how much tax he pays in the UK but it’s worth noting Murdoch’s News Corp has been accused of using aggressive tax avoidance schemes in the UK and other countries.

Murdoch’s News Corp was revealed to have paid no UK corporation tax in 2011 despite making massive revenues from its UK operations. The revelation, which came in 2012, led to criticism from politicians and the public, who accused News Corp of using complex offshore structures to avoid paying UK tax.

There has been an effort to crack down on tax avoidance by multinational corporations in the UK, and News Corp has reportedly taken steps to restructure its business and comply with UK tax laws. But it’s unclear whether Murdoch himself pays tax in the UK or whether he uses similar tax avoidance schemes to those employed by his company.

Recent legal woes

Murdoch’s media empire isn’t above using questionable tactics and verbally violent language. Most of his media are rooted in right-leaning conservative views and shies away from progressive ideas. 

Fox News recently agreed to pay Dominion Voting Systems more than $787 million in a late settlement in the defamation case linked to the channel’s false claim about the 2020 US election. It’s the largest known defamation payout by a media company in the US and Fox News has acknowledged the claims it made about the election were false – a rare admission for a TV channel that often promotes misinformation. 

And Fox News could end up paying more for its conduct after the 2020 US election. Smartmatic – another voting technology company, is suing for $2.7 billion lawsuit. 

But Murdoch’s Dominion case is not the most significant one he’s had to bear. Over a decade, Murdoch’s tabloid newspaper empire’s phone hacking scandal in the UK has been much more costly, surpassing more than £1 billion in total, according to the Press Gazette.  The cost covers expenses related to the scandal between 2011 and 2020, including legal fees, damages, and costs associated with the subsequent restructuring of Murdoch’s UK media empire. 

Phone hacking scandal, celebrities, and The Royal Family

Back in 2007, Murdoch’s now-defunct News of the World editor and a private investigator were convicted of conspiracy to hack the voicemails of British royals. The scandal found its way back to the spotlight in 2010 and 2011 amid allegations that phone hacking was common at the News of the World tabloid and police had been complicit. 

British journalists were accused of illegally hacking the voicemails of thousands of people, ranging from top politicians to celebrities to murder victims and the families of British troops killed in action. 

News of the World ultimately shut in July 2011, shortly after it was revealed that a journalist at the publication possibly hacked into the voicemail of missing teenager Milly Dowler in 2002 and deleted messages to free space, causing her parents to believe she was still alive. 

A few months later, News International, the paper’s publisher agreed to pay £2 million to the Dowler family. Murdoch agreed to donate £1 million to charities of their choice. 

In the years since legal costs for Murdoch-owned media tied to phone hacking have continued to climb. Celebrities such as Elton John and Elizabeth Hurley have received payouts.

Princess Diana ditched her police escort, believing they were leaking private information about her to the press

And it isn’t over for Murdoch’s empire. The publisher of The Sun – another Murdoch newspaper, is said to incur nearly £47 million in costs tied to  “allegations of voicemail interception and inappropriate payments to public officials” in the year to July 3, 2022. News Group Newspapers (NGN) has set aside another £53 million ($66 million) for additional claims. 

Prince Harry and actor Hugh Grant are amongst those who have filed legal challenges against The Sun tied to phone hacking. 

In a statement, NGN said: “In 2012, an unreserved apology was made to all of those who had brought cases against the News of the World for voicemail interception. Since then, NGN has been paying financial damages to claimants.”

It added that “a number of disputed claims,” including some involving The Sun, were still going through the courts.

“The Sun does not accept liability or make any admissions to the allegations. It is of course common litigation practice for parties to reach a settlement before trial to bring a resolution to the matter for commercial reasons,” NGN said.

Will his reign over Britain end? 

It’s difficult to predict whether Britain will ever be free of Rupert Murdoch but there have been some efforts to increase media plurality and regulate the concentration of media ownership. But the efforts have been slow and Murdoch continues to exert his power and influence over the country – despite not even living here. 

There are a few ways to speed up ending Murdoch’s control over UK media, including limiting the number of media outlets that any one individual or company can own. It could help promote greater media diversity and reduce the influence of a small number of wealthy and powerful people. 

A rise in digital and social media platforms could also see a dip in Murdoch’s control as they are not controlled by traditional media owners. This could promote greater media plurality – although there are fears over misinformation – which is ripe on social media. 

Murdoch’s influence on Britain could end depending on a range of factors, including political will, public opinion and growth in technology.