From: www.wired.com

An Apple spokesman confirmed that iTunes will in fact sell Michael Jackson’s This Is It album, settling confusion about whether Sony’s insistence that the album be sold as a bundle conflicted with iTunes’ general practice of selling songs as individual downloads.

Apple and Sony have agreed to meet somewhere in the middle. As such, iTunes will sell two versions of the album — the larger containing everything that’s on the physical offering (two versions of the new “This Is It” single, four demos, and 14 previously-released “greatest hits” tracks), while the smaller E.P. (extended play single) version will contain only the six previously unreleased tracks.

“We look forward to offering the new Michael Jackson album, as well as a digital-only E.P. with six previously unreleased tracks, providing fans a great way to get all of the new songs,” said Apple in a statement issued to Wired.com. “The iTunes Store will offer the album-only single “This Is It” on both the album and E.P.”

As it turns out, Apple does not have a firm policy against selling bundled music. Rather, exceptions are made on a case-by-case basis, as happened here and with albums from (iTunes links) Dirty Vegas, Herbie Hancock, and Trey Songs, and the O Brother, Where Art Thou soundtrack.