Microsoft Withdraws Audio Device Directive
From Associated Press
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.
