RealNetworks Files Antitrust Suit Against Microsoft

Please, unless you give me solid reasons otherwise, I’ll mark this under “let’s try…no one penalized for dreaming either” category: RealNetworks on Thursday sued Microsoft on antitrust charges, accusing the software giant of illegally using its Windows monopoly to limit consumer choice in digital media.

The suit, filed in federal court in San Jose, Calif., 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,” according to a statement from RealNetworks.

For full RNWK statement , read this press release

The 62-page complaint alleges that Microsoft broke federal laws by (as summarized by Seattle PI):

– Maintaining a monopoly in Intel-compatible PC operating systems through its Windows products.

– Bundling Windows Media Player with Windows.

– Trying to monopolize the digital media market, which consists of software for pushing, or serving, digital media over the Internet and for displaying the content on PCs.

– Bundling its media-server software with its server operating system.

– Restraining trade through agreements with computer makers that restrict the distribution of RealNetworks’ competing software.

The suit also says Microsoft broke California law by restraining trade, competing unfairly and selling its Windows Media products below cost to harm competitors. In addition to damages, the suit asks that Microsoft be ordered to halt those actions.

Microsoft said in a statement that “RealNetworks’ legal action today is unfortunate and particularly surprising given the intense competition in the digital media marketplace. The facts are clear. There is vibrant competition in this marketplace and Real Networks’ 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.”

Read the full MSFT .reaction statement here

News.com II: It’s All in The Timing: Real was likely hoping for action by federal antitrust regulators in the United States…but the current pro-business attitude of the U.S. Department of Justice and lingering anti-European attitudes make such intervention increasingly unlikely…At least as significant, however, may be Microsoft’s decision to enter the increasingly crowded online music business, with an online store similar to Apple Computers’ iTunes and Real’s Rhapsody.

News.com III: Glaser: Bull in a china shop: “But when the bubble burst, so did Glaser’s ambitions of outdoing his ex-boss. RealNetworks has since struggled to recapture its stride and was forced to reinvent itself as an Internet cable TV station–in no small part because of competition from Microsoft in the content-streaming business.”

Read the full 64-page complaint here (2.6 MB PDF download)

News.com IV: Microsoft’s antitrust saga continues: A roundup of the dizzying array of lawsuits against MSFT over the years…

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