By silicon.com, 22 December 2003 08:20
NEWS Streaming media provider RealNetworks is once again commencing legal action against long time nemesis Microsoft on antitrust charges, accusing the software giant of illegally using its Windows monopoly to hurt digital media rivals.
In the suit, filed in federal court in San Jose, California, RealNetworks alleges that Microsoft has "pursued a broad course of predatory conduct over a period of years...resulting in substantial lost revenue and business for RealNetworks."
The complaint adds that Microsoft has wielded its "monopoly power to restrict how PC makers install competing media players while forcing every Windows user to take Microsoft's media player, whether they want it or not."
In a conference call with reporters, RealNetworks General Counsel Bob Kimball said he believes the company's damages could exceed $1bn measured in lost business stemming from Microsoft's actions. The suit also seeks injunctive relief to prevent "further illegal conduct" by Microsoft.
Kimball said: "Our case is based on many of the same types of Microsoft conduct that have already [been] declared to be illegal - such as failure to disclose interface information and imposing restrictions on PC makers - as well as a broad course of additional predatory conduct."
Real said its lawsuit is complementary to the European Commission's ongoing investigation of Microsoft business practices. Real is cooperating with that inquiry.
In a statement, Microsoft responded that key allegations of the suit appeared to conflict with evidence of strong competition in the digital media market.
"RealNetworks' legal action today is unfortunate and particularly surprising given the intense competition in the digital media marketplace," Microsoft said. "The facts are clear. There is vibrant competition in this marketplace and RealNetworks' own reported growth shows that they have thrived on Windows and many other operating system platforms. Computer manufacturers are free to install and promote any media player on new PCs. Consumers are free to use any media player - and many consumers use several different media players."
Other charges allege that Microsoft used contractual restrictions and financial incentives to "force PC makers to accept Windows PC operating systems with the bundled Windows Media Player and to restrict the ability of PC makers to preinstall or promote competing digital media players".
Evan Hansen and David Becker write for News.com
Comments
There are 5 comments. Join the discussion
1. Joe w
Hint: Real ain't Netscape...
The only reason people use Real's format's is because they didn't realize that programs like CDEx(free) are way better. Ditto with MS's Media Player 9. Basicly, Real's saying that the other major proprietary media formats are controled by the OS makers like MS and Apple. LOL
2. Darren Long
As if anyone wanst to use Real Player anyway. It's a nasty lump of trackware. Also a real source of shame for the BBC who alienate much of their potential audience by using this proprietary standard for audio and video exclusively.
3. Garry
I agree with darren, the bbc should use other software as well. i do not use real player, it spreads through your pc almost virus like, it pops up everywhere...why? all i want is a media player
4. Phil Bennellick
Real Player is worse than a virus in the way it takes control of a PC, and resists, with vigor, being removed. No one in their right mind would use it over WMP.
5. David Champion
The argument isnt about the technolgy but the freedom of the consumer to choose and the access rights of development companies to Windows OS.
I cant think of a clearer case for separating Window OS from the rest of Microsoft making the OS open, available, cheap and without 1 sided distribution tie ins.
Because of the monopoloy Microsoft should be VERY STRICTLY regulated.
Every move should be scrutinised.
The burden of proof should be on them to prove they are not being anti-competative
The whole of the .NET stategy may be anticompetative. By putting the .NET Framework on all new windows releases it completely undermines JAVA on windows.
The purchase of Great Plains accounting software and Navision.
If subsequently bundled at low cost and strategically linked to Microsoft web services will put many Accounting software houses out of business.
If the Windows kernel and basic OS libraries were separately owned or in public ownership then various Windows distros would result.
This would stimulate competition and benefit virtually everybody in the industry even Microsoft itself.