Rupert Murdoch's News Corp announced today that it is to stop paying the legal fees of the private investigator jailed in the phone-hacking scandal.
In a statement, the company said that its management and standards committee had decided to terminate any arrangement to pay the legal fees of Glenn Mulcaire "with immediate effect".
At yesterday's hearing of the Commons Culture, Media and Sport Committee, the media mogul's son James Murdoch admitted he had been "very surprised" to learn payments were being made towards Mr Mulcaire's legal fees.
It emerged at the hearing that News International - News Corp's UK newspaper publishing arm - had been contributing to the legal costs of Mulcaire and former News of the World royal editor, Clive Goodman, who were both jailed in 2007.
James Murdoch told the committee he had queried the payments but was informed that they were "customary" and could be continuing.
"I was very surprised to find out that had occurred. They were done, as I understand it, in accordance with legal counsel and their strong advice," he said.
"I do know certain legal fees were paid for Mr Mulcaire by the company and I was as surprised and shocked to learn that, as you are."