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The GuardianThe Australian publishes erroneous report about country's PM which could lead to a withdrawal of state adsLisa O'Carroll | Thursday September01 2011 13.02 BST
The Australian government has reportedly put itself on a war footing with Rupert Murdoch's Australian newspaper division after it published, and then retracted, an erroneous report about the country's prime minister.
According to the Australian Financial Review, the government, has had discussions about "going to war" with the News Corporation subsidiary News Ltd and is even considering withdrawing state advertising.
There are also increased prospects to a wider review of media ownership amid concerns that Murdoch, who owns 70% of the country's papers, has too much power.
The Australian prime minister, Julia Gillard, reportedly called the government discussions after News Ltd's daily paper the Australian published an erroneous report linking her to a former boyfriend and the alleged embezzlement of union funds.
Read more:
http://www.guardian.co.uk/media/2011/sep/01/rupert-murdoch-the-australian-government