Feds: Microsoft tried to cut out music software rivals

Posted by VISITOR on Oct 23, 2005 8:51 PM EDT
(AP)
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Microsoft Corp., already under government scrutiny over its behavior toward competitors, told manufacturers of iPod-like portable audio devices that under a new marketing program they would not allowed to distribute rivals' music player software but pulled back after one company protested.

The Justice Department said it decided to drop the issue because Microsoft agreed 10 days later to change the proposal.

[ED - And the Justice department believe MS precisely Why? ]

Oct. 21, 2005

Feds: Microsoft tried to cut out music software rivals

WASHINGTON -- Microsoft Corp., already under government scrutiny over its behavior toward competitors, told manufacturers of iPod-like portable audio devices that under a new marketing program they would not allowed to distribute rivals' music player software but pulled back after one company protested. The Justice Department said it decided to drop the issue because Microsoft agreed 10 days later to change the proposal. The government disclosed details of the dispute in a court document made available Thursday. The disputed proposal described in the court document would have precluded manufacturers of those devices from distributing software to consumers other than Microsoft's Windows Media Player in exchange for Microsoft-supplied CDs. Legal and industry experts said Microsoft's demands probably would have violated the landmark 2002 antitrust settlement between the company and the Bush administration. They expressed astonishment that Microsoft was not more careful. (AP)

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