The legal basis is the Competition Act 1998, Chapter 1, Section 2, Subsection 2, in particular Subsection 2(e): 'make the conclusion of contracts subject to acceptance by the other parties of supplementary obligations which, by their nature or according to commercial usage, have no connection with the subject of such contracts.'
I bought a Samsung laptop and went through the whole process, culminating in the issuance of a Small Claim. When Samsung realised I was serious, they hastily settled - I got back the cost of Windows (full retail price!), plus court costs, and the costs for having to send so many letters...
Using legal process (a Small Claim) is very easy, and nothing to fear - provided you've done the homework. The fact is that these large companies are getting away with illegal practices, but any determined individual can stop them dead. You have rights, so enforce them.