Microsoft Music Deals Raise Questions

Microsoft considered forcing its partners to stop bundling rival music software under new marketing plans that would only allow Windows Media Player to be shipped with portable MP3 players, but scrapped the plan after one manufacturer complained, several media sources reported Friday.

Legal analysts were shocked at the news, saying the tactic would have violated the Microsoft's antitrust settlement, and likely flew in the face of the required antitrust training employees are expected to complete.

Microsoft's business practices are being monitored through 2007 as part of the agreement struck with the Bush administration in 2002.

Government lawyers decided against taking any action against the company since it quickly agreed to change the plan, which was never actually implemented. It is unclear to experts, however, whether the tactic is a sign that Microsoft may be moving back its old ways, or was just a careless mistake.

Microsoft has a court date next Wednesday discuss the antitrust settlement with U.S. District Judge Colleen Kollar-Kotelly. It is unknown whether the music store issue will be raised; the hearing was scheduled before news of the proposal surface.

To its defense, Microsoft told the media that the program was merely a draft, and was not intended to be rolled out. It was only released to manufacturers in an attempt to solicit feedback on the solution.

Since it was not a legal contract, Microsoft lawyers did not see it. This could explain why the possible antitrust issues were not caught.

Microsoft is locked in a battle with Apple's iPod for control of the digital music industry. So far, Apple is winning in a landslide. Three out of every four music players are iPods, and iTunes controls over 80 percent of legal music downloads.