Well, the Media Player part of the decision is weird, but the big part deals with the code to be opened up for networking protocols.
This lawsuit has been ongoing for years. The big issue are developers who want to make non-windows products (like Linux) to work with the Windows machines. Samba does that, but it was reverse engineered and is under an open source license, companies want the ability to create products without conflicting with an open source license.
Microsoft had earlier tried to argue that they had complied with the decision, but they were forcing people to only look at the code under severe restrictions, so severe that the EU decided MS wasn't really abiding by the decision at all.
The Media Player portion is kind of petty, although in the grand scheme I think it is kind of minor. MS will just remove the GUI and leave the rest of the code behind. The first update a user does will offer it as a download.
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