James Murdoch has stepped down as executive chairman of News International, the UK newspaper business that owns the Sun and the Times titles.
The newspaper publisher has been tainted by phone-hacking allegations.
The scandal led the company to close its News of the World title in July last year.
Mr Murdoch will remain as deputy chief operating officer of parent group News Corporation, run by his father Rupert.
James Murdoch, 39, said: “I deeply appreciate the dedication of my many talented colleagues at News International who work tirelessly to inform the public.”
He added that the launch of a new Sunday edition of the Sun and “new business practices” put the company in a “strong position” for the future.
The Labour leader Ed Miliband said it was “right” that James Murdoch had resigned.
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