Shockwaves from the UK hacking scandal, which has cost media tycoon Rupert Murdoch his $12 billion phone BSkyB deal, were continuing to be felt worldwide.

Australian prime minister Julia Gillard has weighed in saying her government may put media laws under the microscope

"To see some of the things that have been done to intrude on people's privacy, particularly in moments of grief and stress in the family lives, I've truly been disgusted to see it," she told Australia's National Press Club.

"I anticipate that we will have a discussion amongst parliamentarians about this, about the best review and way of dealing with all of this," she said.

Her comments follows US lawmakers’ calls for a probe into News Corp's conduct in America.

There are fears that the scandal could infect respected US paper the Wall Street Journal, acquired by News Corp in 2007.

"I think the UK hacking scandal has the potential to damage the Wall Street Journal's reputation," Jay Ottaway, whose family previously owned a stake in WSJ publisher Dow Jones & Co, told Reuters.
"It wouldn't surprise me at all if others call for hearings and investigations, and perhaps they may even be held. There's going to be a lot of activity around this issue," said Jeffrey Silva, analyst with Medley Global Advisors.

Murdoch shut down his biggest selling UK paper News of the World last Sunday in a bid to contain the spiralling crisis which included allegations that investigators employed by the paper hacked thousands of peoples phones, including that of murdered schoolgirl Milly Dowler and victims of the 7/7 bombings. There were also allegations that the paper had paid police for sensitive information. But the mogul was ultimately forced to withdraw his bid for broadcaster BSkyB yesterday.

However, despite speculation there is no indication that Murdoch is about to sell off his remaining UK newspapers, The Times, the Sunday Times and The Sun.

Murdoch withdraws BSkyB bid