Internet media company RealNetworks said last night it is suing Microsoft because it says its longtime rival is unfairly promoting its own software for playing audio and video on computers and over the Internet.
In an antitrust complaint filed in federal court in San Jose, California, RealNetworks claimed that 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 is seeking more than a billion dollars in damages and unspecified injunctive relief measures.
Microsoft rejected RealNetworks claims, saying that there was "vibrant competition" in the digital media player marketplace and that it would respond forcefully to RealNetworks' allegations in court.
"RealNetworks claims to be the No 1 provider of digital media solutions, with massive distribution of its software and more than one million player downloads a week," said Microsoft spokesman Mr Jim Desler.
"Thus, this is a case where a leading firm is seeking to use the antitrust laws to protect and increase its marketplace share and to limit the competition it must face."