- NEW: Cameron says it would be a "matter of deep regret" if Coulson had lied to him
- Murdoch's media group needs "root and branch change," David Cameron says
- If Murdoch does not testify before lawmakers, he will "effectively have said goodbye to Britain," an MP says
- U.S. Sen. Jay Rockefeller warns that anyone who violated 9/11 victims' privacy faces severe consequences
London (CNN) -- Media baron Rupert Murdoch's News International needs "root and branch change," British Prime Minister David Cameron said Wednesday in the wake of accusations that the company illegally eavesdropped on thousands of people and bribed police to get confidential information.
The prime minister also defended his decision to hire Andy Coulson, who had worked at the News of the World tabloid at the center of the unfolding scandal. Cameron, who hired Coulson as his spokesman, said Coulson assured him he had done nothing wrong.
"If I was lied to, if the police were lied to, if the select committee were lied to, it would be a matter of deep regret and a matter for a criminal prosecution," Cameron said.
The prime minister's remarks came in a raucous appearance before parliament.
Condemnation of Murdoch came from many British politicians a day after a senior American senator warned that any Murdoch journalists who illegally eavesdropped on 9/11 victims would face "severe" consequences.
Sen. Jay Rockefeller, a West Virginia Democrat, said reported hacking by journalists at Murdoch's News Corporation was "offensive and a serious breach of journalistic ethics," as well as a potential violation of U.S. law.
The Senate Commerce Committee chairman urged authorities to "investigate to ensure that Americans have not had their privacy violated."
British lawmakers investigating the scandal have called Murdoch, his son James and former News of the World editor Rebekah Brooks to testify before them next week.
Parliament's Culture, Media and Sport Committee asked the three to appear on July 19, a representative told CNN.
"Senior executives" of Murdoch's British newspaper company "will cooperate," News International said in a statement, without specifying who.
If the Murdochs do not answer the summons, they "will effectively have said goodbye to Britain," Labour lawmaker Chris Bryant told CNN Wednesday. He believes he, too, is a hacking victim.
Lawmakers are expected to vote Wednesday on a motion telling Murdoch to drop his bid to take full control of British satellite broadcaster BSkyB.
The vote will not have force of law, but if it is supported by lawmakers across the spectrum, as is expected, it will be an unusual and powerful statement from the country's political establishment.
The news represents a further threat to Rupert Murdoch's plans to create Britain's largest media company by acquiring the satellite broadcaster. News Corp. has been seeking to buy the 60.9% of the BSkyB shares it does not already own.
Labour leader Ed Miliband and Deputy Prime Minister Nick Clegg are among lawmakers who have already urged Murdoch to reconsider the bid.
Former British Prime Minister Gordon Brown Tuesday accused Murdoch's newspaper group of illegally obtaining private information about him.
Speaking to the BBC about allegations that The Sunday Times illegally obtained private information about him, Brown accused Murdoch's newspapers of having "links with criminals."
Brown said the paper appeared to have gotten access to his legal files. He said he was "genuinely shocked" by its methods.
The Sunday Times denied Brown's allegations and said it pursued the story about his purchase of an apartment at below-market prices in the public interest.
"We had reasonable grounds to investigate this matter," the company said Tuesday in a statement. "We believe no law was broken in the process of this investigation, and contrary to Mr. Brown's assertion, no criminal was used and the story was published giving all sides a fair hearing."
Brown's allegations, however, widen the scandal that brought down Britain's best-selling newspaper, News of the World, to other newspapers also owned by Murdoch's News International media group.
News International is accused of attempting to bribe police officers for information -- including personal contact details for members of the royal family -- in addition to the violation of privacy allegations.
The latest allegations follow Sunday's closure of the News of the World over other allegations of illegal breach of privacy.
The decision to pull the plug on the 168-year-old paper came amid accusations that its reporters illegally eavesdropped on the phone messages of murder and terrorist victims, politicians and celebrities, as well as claims it may have bribed police officers. Police said Thursday they had identified almost 4,000 potential targets of phone-hacking.
Murdoch flew Sunday to London, hours after the final edition of News of the World hit the stands. The publication was the first British national paper Murdoch bought, in 1969, as he began to propel himself from Australian newspaper proprietor to international media magnate.
With its closure, News International now owns the Sun, The Times and The Sunday Times in Britain.
Murdoch's News Corporation also encompasses Fox News, The Wall Street Journal, the New York Post and Harper Collins publishers.
CNN's Richard Allen Greene contributed to this report.
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