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This is a prime minister running scared from the decision he made
Ed Miliband
News Corporation's bid to take control of BSkyB will be referred to the Competition Commission, the culture secretary has told MPs.
Jeremy Hunt said he had taken the decision today after Rupert Murdoch decided to withdraw assurances to spin off Sky News.
In a dramatic statement to the Commons this afternoon, Hunt said the commission would give "exhaustive consideration" to the bid "taking into account all recent developments".
"On January 25th I said I was minded to refer News Corporation’s proposed merger with BSkyB to the Competition Commission in the absence of any specific undertakings in lieu," he said.
"As a result of News Corporation’s announcement this afternoon I am now going to refer this to the Competition Commission with immediate effect and will be writing to them this afternoon."
He said the regulator would report back in six months time.
Murdoch's wish to take full control of BSkyB has come under increased attack in recent days following allegations of phone hacking by News International newspapers.
The scandal took a further twist today as Gordon Brown alleged journalist working for News International obtained details of his son's medical records as well as hacking his phone and bank account.
The culture secretary confirmed there would also be a full judge led public inquiry into the original police investigation into phone hacking as well as a separate inquiry in to the "practises and ethics" of the British press.
David Cameron was not in the Commons to hear or deliver the statement, a decision Ed Miliband said was an "insult to the House and the British public".
The Labour leader said Hunt's decision was made out of the "fear" that they would lose a Commons vote on the matter on Wednesday.
He added: "This is a prime minister running scared from the decision he made. This is a prime minister who is refusing to show the responsibility the country expects. The victims of this crisis deserve better. This House of Commons deserves better. The country deserves better."
But Hunt said the prime minister had acted quickly on phone hacking revelations and had established two inquiries within one day of returning to London from Afghanistan.
And he said Miliband should not "throws sticks in glass houses" as the Labour leader had appointed a former News International journalist as his media adviser.
"He criticised me in his comments for willing to accept assurances from News Corp." he said.
"He was willing to accept assurances from the very same people about Tom Baldwin."
And he said Miliband was a member of the last Labour cabinet that decided not to act on phone hacking.
"He attended Rupert Murdoch's summer party and failed to bring up the matter of phone hacking," he told MPs.
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