The European Commission has been demanding that Microsoft make changes that give users more choice regarding which software they use. The Commission wants Microsoft to remove its media player so other companies can compete with it.
Microsoft says if the Commission forces them to rewrite their operating system, it will send an inferior standard version of Windows for European users. The Commission says it will fine Microsoft if they does not make the changes.
According to the Commission, RealNetworks RealPlayer has not done well since Microsoft updated MS Windows Media Player and put it on their operating system in 1999. Microsoft disputes the Commission's statistics. Source