RealNetworks Sues Microsoft, Charging Monopoly of Digital Media

RealNetworks alleged that the software giant has violated state and federal antitrust laws, exploiting its monopoly to restrict competition.

The Seattle-based digital media company said Microsoft "pursued a broad course of predatory conduct over a period of years by abusing its monopoly power, resulting in substantial lost revenue and business for RealNetworks."

RealNetworks filed the lawsuit against Redmond, Wash.-based Microsoft in federal court in San Jose because many of the experts and witnesses who will testify in the case live in Silicon Valley, RealNetworks spokesman Greg Chiemingo said.

Microsoft spokesman Jim Dessler said the company had not yet seen the lawsuit and he could not comment immediately. The company planned a statement later Thursday.

The lawsuit alleges that Microsoft, which builds the Windows operating system that controls more than 90 percent of the personal computers in the United States, restricts how PC makers install competing media players. Microsoft forces Windows users to accept Microsoft's media player, "whether they want it or not," to the exclusion of players made by RealNetworks or other competitors, RealNetworks alleges.

"While we much prefer competing in the market - as we are doing and have done for nine years - our board has made a carefully considered business decision to take this action to end Microsoft's illegal conduct and recover substantial damages on behalf of our shareholders," RealNetworks chairman and chief executive Rob Glaser said in a statement.

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