Former News of the World editor Andy Coulson has been arrested by police investigating phone hacking and corruption allegations.
And ex-NoW royal editor Clive Goodman, jailed in 2007 for phone hacking, has been arrested over corruption claims.
It came as Prime Minister David Cameron defended his decision to employ Mr Coulson and announced two inquiries – one led by a judge – into the scandal.
Mr Coulson has denied any knowledge of phone hacking while he was NoW editor.
The controversy has raised questions about the proposed takeover of satellite broadcaster BSkyB by Rupert Murdoch’s New Corporation, the ultimate owner of the News of the World.
And broadcasting regulator Ofcom has now written to the chairman of the Commons culture committee highlighting its duty to ensure that anyone holding a broadcasting licence is a “fit and proper” person to do so.
The letter says “in considering whether any licensee remains a fit and proper person to hold broadcasting licences Ofcom will consider any relevant conduct of those who manage and control such a licence”.