ComputerWorld is reporting that Amazon is planning to launch an online music store to compete with Apple’s iTunes. To accompany the store, Amazon will sell a branded portable music player.

The company is in advanced talks with four global music companies about a digital music service that could be launched as early as this summer, according to the report. With its history of selling CDs online and its huge customer base, Amazon could pose a formidable threat to Apple’s domination of the online music business.

With the success they have had with online sales of Books and CDs, this could be the first serious competitor for iTunes.