Microsoft backs off exclusive music deals

Microsoft has backed off its exclusive music deal agreements it had required of MP3 player manufacturers. Already under government scrutiny over its behavior toward competitors, Microsoft had 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, according to Associated press. "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. Legal and industry experts said Microsoft's demands probably would have violated the landmark 2002 antitrust settlement between the company and the Bush administration."

Filed under: industry
Other story tags: digital music/video

, 4

4 comments

Reader Reactions (Please use <i></i> for italic text)

subscribe to comments
for this article

Expand All

Global Settings

Glasspusher

landmark my ass

10/20, 6:21pm, EDT

"Microsoft's demands probably would have violated the landmark 2002 antitrust settlement between the company and the Bush administration"

yeah, right. Convicted abusive monopolist gets off with a slap on the wrist. What a laugh.

Fresh-Faced Recruit

Joined Oct 2000

User is offline

MacnTX

Huh?

10/20, 7:12pm, EDT

Not exactly a slap on the wrist. They were forced to change the offending contracts in order to comply with the original settlement after all...

Fresh-Faced Recruit

Joined Apr 2004

User is offline

dave a

Yup

10/21, 8:27am, EDT

...that's a slap on the wrist for refusal, yet again, to follow the terms of their settlement unless threatened. What did it really cost them? $500 in lawyer fees?

If they had to pay $1 billion for each time they violated their settlement, they might start obeying it. (Keep in mind that $1 billion is close to pocket change for them, but it adds up.)

Fresh-Faced Recruit

Joined Jan 2002

User is offline

testudo

Re: landmark

10/21, 12:05pm, EDT

Well, it was landmark. It was the first time in a long while a convicted monopolist was allowed to 'settle' by basically agreeing to a set of 'rules' that they might or might not decide to stay with.

Now in Europe, there they had some teeth. US? Nah.

Fresh-Faced Recruit

Joined Aug 2001

User is offline

Your Comments

Not a member of the MacNN forums? Register now for free.

Default Comment View
External Page Links
Comment Threading View