News International has accepted liability for the hacking of mobile phones by journalists at its News of the World tabloid.
The Rupert Murdoch owned corporation, which also owns the Times, the Sunday Times and The Sun, offered an "unreserved apology" and expressed "genuine regret" for the hacking of voicemails of a number of public figures including MPs.
In a statement issued today it said: "News International has decided to approach some civil litigants with an unreserved apology and an admission of liability in cases meeting specific criteria.
"We have also asked our lawyers to establish a compensation scheme with a view to dealing with justifiable claims fairly and efficiently.
"This will begin the process of bringing these cases to a fair resolution with damages appropriate to the extent of the intrusion."
The statement added: "That said, past behaviour at the News of the World in relation to voicemail interception is a matter of genuine regret.
"It is now apparent that our previous inquiries failed to uncover important evidence and we acknowledge our actions then were not sufficiently robust."
Several politicians believe their phones were hacked into by the News of the World, including Tessa Jowell, Chris Bryant and former deputy prime minister Lord Prescott.
Just this week Lord Prescott called for any decision over the future ownership of BSkyB be delayed until the hacking scandal is resolved.
He asked ministers: "Are the government aware, in making the decision on BSkyB, that it would be totally unacceptable for a company that is actively involved at all levels in criminal acts to be given control of BSkyB?"
And reacting to today's admission by News International he posted on Twitter: "The NOTW has now admitted mass criminality. The Gvt should NOT approve Murdoch's bid for BSkyB until all investigations are complete."
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