Google’s decision to drop native support for the H.264 video codec in Chrome has generated a number of arguments on the Web. Google’s defenders argue that H.264 is not royalty-free and is thus inappropriate for use with HTML5, since the W3C refuses to mandate the use of royalty-encumbered technologies in its specifications. Google’s critics argue that this doing so is a cynical move aimed at bolstering its own codec, WebM, and undermining vendors like Apple and Microsoft who support H.264 and who don’t support WebM or Theora. It seems inarguable that this decision by Google insures that Flash players will continue to be the primary means of showing video on the Web.
The best overview of this issue that I’ve seen is Peter Bright’s piece at Ars Technica: Google’s dropping H.264 from Chrome a step backward for openness.