Rupert Murdoch, right, with son Lachlan, center, and an unidentified man, yesterday in London (AP)

News Corp.'s British phone hacking scandal, which has revolted Britain and the world with revelations that tabloid reporters hacked the phones of murder victims, and possibly 9/11 victims, as well as politicians and celebrities, is now at the government "contempt" stage: Because chairman Rupert Murdoch and his son, James, who heads the conglomerate's British newspaper division, have refused to come before Parliament to answer lawmakers' questions, the media executives have now been issued summons to appear or else they will be held in contempt. And now American lawmakers, including Republican Congressman Peter King, wants the FBI to investigate!

King, the first GOP member to join Democrats with questioning News Corp, said yesterday, "You think back to the days of 9/11, when people didn't know who was dead, who was alive, everyone was walking under this cloud. To think that payoffs could have been made to access the phones of the dead or missing? It is disgusting."

Rupert Murdoch, whose News Corp. empire looms around the world, with holdings in Europe, Australia, Asia, and, of course, the U.S. (Fox, Fox News, 20th Century Fox, NY Post, Wall Street Journal), explained he wouldn't be able to attend the July 19 Parliamentary hearing, saying, "However, I am fully prepared to give evidence to the forthcoming judge-led public inquiry and I will be taking steps to notify those conducting the inquiry of my willingness to do so. Having done this, I would be happy to discuss with you how best to give evidence to your committee." His son (and once-believed heir apparent) James said he couldn't make it but could come in August, which British lawmakers think is unacceptable. Update: Now they may attend the hearing!

Michael Wolff, who wrote a biography of Murdoch with his cooperation, told Politico, "What is happening in the U.K. is a nuclear meltdown. News Corp. will have to withdraw from the U.K.. It is essentially in full retreat. It will have to dispose of its assets there which are losing value by the minute, so that puts the U.S. in an interesting a peculiar position, that a company could essentially fold in one country and continue as though nothing happened in another country... So what it means is that the focus turns here, and the analysis is going to be that this is a company that engaged in practices that are anathema to reasonable men."

News Corp. abandoned its attempt to takeover another British broadcaster, BSkyB, because of the scandal that includes allegations of payoffs to Scotland Yard and illegally gaining access to a former Prime Minister's family medical records.