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Digital media players access audio, video and images on personal computers. By including the proprietary Windows Media Player in the proprietary XP OS, a practice known as bundling, Microsoft gained an unfair market advantage, some competitors complained.
The commission, the executive body of the European Union, issued its unbundling order following a five-year investigation of complaints about Microsoft's protocol licensing in Europe. "The commission," Microsoft complained in response, "is seeking to make new law that will have an adverse impact on intellectual property rights and the ability of dominant firms to innovate."
Under its ruling, the commission allowed computer makers to add third-party media players when they built computers running the stripped-down "N" version of XP. If a manufacturer did not include a media reader in its OS, buyers could install their own, whether it was made by Microsoft or others.
The commission rejected 10 names proposed by Microsoft for the stripped-down OS, including "Windows XP Reduced Media Edition," before suggesting the "N" nomenclature on its own. Microsoft accepted the proposed name with "some misgivings."
In addition to removing the Windows Media Player, the commission in 2004 fined Microsoft a record 497 million euros, the equivalent of $794 million.
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