Lessons learned from inquiry

LONDON -- The first phase of Britain's media ethics inquiry ended this week after 40 days of dramatic hearings that heard from 184 witnesses -- celebrities, journalists, editors, academics and lawyers -- and revealed wildly differing perspectives on the murky workings of the tabloid press.

Prime Minister David Cameron set up the inquiry, led by Lord Justice Brian Leveson, in response to a scandal that began with illegal eavesdropping by Rupert Murdoch's News of the World. Murdoch shut down the 168-year-old tabloid in July after evidence emerged that it had accessed the mobile phone voicemails of celebrities, politicians and even crime victims in its search for scoops.

The first section of the inquiry looked at the culture, practices and ethics of the British press.

Here's what we've learned so far:

Just one form of wrongdoing

As the inquiry opened, victims' lawyer David Sherborne said it was not just the disgraced News of the World, but "the whole of the press, and in particular the tabloid section of it, which we say stands in the dock."

Illegal eavesdropping was just one of the improper techniques of which papers stood accused. Celebrities -- and non-celebrities thrust into the spotlight -- described paparazzi stakeouts, late-night pursuits and relentless attention that left them angry and paranoid.

Hugh Grant testified his apartment had been broken into, details of a hospital visit leaked and the mother of his baby daughter hounded by paparazzi. He accused the Mail on Sunday of hacking his phone ("A mendacious smear," countered Paul Dacre, editor of sister paper the Daily Mail).

Singer Charlotte Church, the subject of intense media interest from childhood, said her mother had attempted suicide partly as a result of a News of the World story about her father's extramarital affair headlined "Church's three in a bed cocaine shock."

System is broken

Almost every witness agreed that the current system of newspaper self-regulation through the Press Complaints Commission does not work.

The commission can impose penalties and order apologies in response to complaints about stories -- but it has no legal powers, membership is voluntary and it is composed mainly of newspaper editors.

Financial Times editor Lionel Barber told the inquiry that the current PCC code "is pretty robust but it needs to be enforced and it needs to be credible."

He stressed, however, that the press must remain independent -- "We will make mistakes and reputations may be damaged, but the principle of free expression is really critical."

News Corp. is sorry -- and has deep pockets

The phone hacking scandal has rocked Rupert Murdoch's global News Corp. which has made strenuous public efforts to salvage its reputation.

The company has established a standards and ethics committee to root out wrongdoing, set aside a 20 million pound ($32 million) fund to compensate victims and has already paid out several million, including 2 million pounds to the Dowler family.

This week News Corp. revealed that the hacking scandal has cost it $87 million, most of it in legal fees.

And the story is far from over. About 60 more hacking lawsuits are being prepared.

The Leveson Inquiry has many more months of testimony in store. The second phase of hearings, looking at the media's relationship with the police, opens Feb. 27.