Microsoft, 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 be allowed to distribute rivals' music player software but pulled back after one company protested.
The Justice Department said that the incident was "unfortunate," but that government lawyers decided to drop the issue because Microsoft (MSFT) agreed 10 days later to change the proposal. The government disclosed details of the dispute in a federal court document.
The disputed proposal described in the court document as a "draft specification" would have affected portable music players that compete with Apple's (AAPL) wildly popular iPod. The plan 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, given its mandatory legal training for employees about antitrust rules and continued monitoring by the Justice Department and a federal judge over its business deals through late 2007.
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The last to know: A Senate panel set an April 7, 2009, deadline for television stations to switch entirely to digital broadcasts, the latest effort to provide certainty to the transition that will free airwaves for wireless companies and emergency responders.
The legislation approved by the Senate Commerce Committee would require stations to end their analog broadcasts and return those airwaves to the government, some of which would be sold in an auction that could bring in $10 billion or more.
The bill also earmarks up to $3 billion to subsidize some of the cost for Americans to buy devices that would convert digital signals so existing analog television sets could still work. The cost of the boxes is expected to be about $50.
One lawmaker warned that Congress must act swiftly to fully educate consumers about the switch. Broadcasters estimate there are 73 million television sets in American homes not hooked up to cable or satellite services and that rely on broadcasts.
"Most of the consumers have no idea how this transition will work and do not realize their TVs are going to go dark," said Sen. Bill Nelson, a Florida Democrat.
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Phone mightier than bomb: Singapore announced new rules to prevent militants and other criminals from using pre-paid subscriber identification module cards in mobile phones.
Deputy Prime Minister and Minister for Home Affairs Wong Kan Seng said three bombs in Thailand's Songkhla province in April were detonated using mobile phones, possibly with pre-paid SIM cards. "Criminals exploit the anonymity of pre-paid SIM cards to avoid detection. Singapore must address this problem urgently as there are over 1.4 million local pre-paid SIM cards, comprising 35 percent of the mobile market, in circulation today," he said in a statement.
From Nov. 1, all sellers of pre-paid SIM cards will be required to ask for and electronically verify personal details of purchasers, said the Ministry of Home Affairs and the city-state's telecoms regulator, the Infocomm Development Authority of Singapore.
All existing pre-paid SIM card users are also required to re-register with their respective mobile service providers.
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Bros before shows: Warner Bros. has become the second studio to support both high definition DVD formats, a move that could shift the advantage to the Blu-ray format backed by a group led by Sony (SNE).
Warner Bros. Entertainment said it would join the board of the Blu-ray Disc Association and will release its films on both the Blu-ray and the rival HD DVD format, which is backed by a group led by Toshiba.
Earlier this month, Paramount Pictures, another supporter of HD DVD, said it would release films in both formats.
The move comes the day after Hewlett-Packard (HPQ), a major backer of Blu-ray, urged that it be more consumer-friendly in a bid to forestall a lengthy and costly war with a competing standard.
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Compiled by Keith Axline. AP and Reuters contributed to this report.
