Tuesday, December 02, 2008

Could Murdoch and Berlusconi be falling out?

Do we have a falling out between two press barons.

Reports say that Rupert Murdoch is not very happy with Italian PM Silvio Berlusconi over the raising of VAT after the rate of tax was doubled to 20% on subscription TV channels.

Murdoch's Sky Italia was effected by the measures introduced in the emergency budget on Friday.It has already been hit by a 25 per cent tax on pornography.

The decision could be seen as a conflict of interest between Berlusconi's broadcasting empire and his role of head of government

Sky Italia Chief Executive Tom Mockridge said that

At a time of economic crisis when other governments are working on solutions to help increase spending power...the Italian government instead announced a measure that goes in the opposite direction

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