The US attorney general, Eric Holder, has confirmed that a preliminary investigation is under way into News Corporation’s activities.
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News Corporation faces a global investigation of all its businesses to ascertain whether they engaged in the same acts of bribery revealed to have taken place in the UK between News of the World reporters and police.
With pressure mounting in the US for the launch of a full-blooded inquiry into News Corporation under the Foreign Corrupt Practices Act (FCPA), the daunting consequences of such a move are becoming evident. Mike Koehler, a law professor at Butler University who is an expert in the act, said a costly and expensive worldwide investigation into possible bribery activities on the part of the company's subsidiaries in America, Australia, Europe, India and China was now almost inevitable.
"Once the US authorities have started investigating the UK phone scandal, their next question is where else?" he said.
A full-scale FCPA investigation could also see News Corporation forced to hand over to US authorities its most sensitive legal documents, even those covered by lawyer-client privilege. US investigators have the right to call for a waiver to the privilege in order to obtain key documents including witness statements and all legal advice given to the company.
http://www.guardian.co.uk/media/2011/jul/18/news-corp-global-investigation-bribery