The Computer Communication Industry Association (CIIA) argued continued bundling could see Microsoft establish another dominant market position, with power of life and death over competitors.
Microsoft, meanwhile, rejected the European Community (EC)’s claim that Media Player dominates digital media, pointing to rapid entry of Apple and Sony into the music download business. One Microsoft economist denied websites are moving to WMP format – saying 80% of web sites are encoded using RealNetworks format.
That claim, though, was rejected by a former Fair Trade Commission economist, speaking for the CCIA, who said 56% of websites streamed WMP only.
Microsoft went on to argue that separating Media Player from Windows would lead to increased costs for ISVs whilst, also, striking at the heart of Microsoft’s business model.
