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Business minister Ian Lucas has said that illegal file sharing had a "huge impact" on the creative industries.
During Commons questions he sought to reassure MPs that any suggestion of removing internet access from individuals would be a "last resort".
Former Labour minister Tom Watson (Lab, West Bromwich East) said the sample used by the music industry to demonstrate the scale internet piracy had been "soundly ridiculed" by the BBC.
And he warned that internet service providers would suffer financially if people were cut off.
Liberal Democrat Phil Willis (Lib Dem, Harrogate and Knaresborough) said that the only way to create a truly competitive market was to allow different broadband platforms to get access to content, such as BSkyB's premium programmes.
He urged ministers not to "give in to Murdoch".
But Lucas' claim that the government benches never liked to give in to Rupert Murdoch was met with shouts of derision from opposition MPs.
"We are not in the pocket of anyone," Lucas insisted.
Mark Todd (Lab, South Derbyshire) said many rural communities were still suffering from unacceptably slow connection speeds, which were damaging both individuals and business.
"Isn’t it time take a tougher regulatory line with BT?" he asked.
Lucas agreed that it was "not acceptable" that individuals and businesses are excluded from broadband.
"It's for that reason that the government has set out a clear policy and is determined to extend broadband," he told MPs.
The exchanges in the Commons came as internet sales giant eBay published a report revealing almost half of online retailers are based in rural areas.
Responding to the report, digital Britain minister Stephen Timms said: "That's why we're ensuring business and consumers in rural areas have access to quality broadband at speeds of at least two megabit per second through our Universal Service Commitment - and also taking steps to ensure next generation networks reach over 90 per cent of the country by 2017."
Business minister Ian Lucas has said that illegal file sharing had a "huge impact" on the creative industries.
During Commons questions he sought to reassure MPs that any suggestion of removing internet access from individuals would be a "last resort".
Former Labour minister Tom Watson (Lab, West Bromwich East) said the sample used by the music industry to demonstrate the scale internet piracy had been "soundly ridiculed" by the BBC.
And he warned that internet service providers would suffer financially if people were cut off.
Liberal Democrat Phil Willis (Lib Dem, Harrogate and Knaresborough) said that the only way to create a truly competitive market was to allow different broadband platforms to get access to content, such as BSkyB's premium programmes.
He urged ministers not to "give in to Murdoch".
But Lucas' claim that the government benches never liked to give in to Rupert Murdoch was met with shouts of derision from opposition MPs.
"We are not in the pocket of anyone," Lucas insisted.
Mark Todd (Lab, South Derbyshire) said many rural communities were still suffering from unacceptably slow connection speeds, which were damaging both individuals and business.
"Isn’t it time take a tougher regulatory line with BT?" he asked.
Lucas agreed that it was "not acceptable" that individuals and businesses are excluded from broadband.
"It's for that reason that the government has set out a clear policy and is determined to extend broadband," he told MPs.
The exchanges in the Commons came as internet sales giant eBay published a report revealing almost half of online retailers are based in rural areas.
Responding to the report, digital Britain minister Stephen Timms said: "That's why we're ensuring business and consumers in rural areas have access to quality broadband at speeds of at least two megabit per second through our Universal Service Commitment - and also taking steps to ensure next generation networks reach over 90 per cent of the country by 2017."
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