Ted Bridis at the AP/Yahoo!:
Already Under Antitrust Scrutiny, Microsoft Backs Off Exclusive Music Contracts Amid Protest
WASHINGTON (AP) — Microsoft Corp., already under government scrutiny over its behavior toward competitors, told manufacturers of iPod-like portable audio devices that they were not allowed to distribute rivals’ music player software, but then pulled back after one company protested.
The Justice Department said the incident was “unfortunate,” but that government lawyers decided to drop the issue because Microsoft agreed 10 days later to change the contracts. The government disclosed details of the dispute in a federal court document made available Thursday.
The disputed contracts would have affected portable music players that compete with Apple Computer Inc.’s wildly popular iPod.
More details by following the link.