By Nate Raymond
NEW YORK Jan 13 Apple Inc lost a bid
on Monday to block an antitrust monitor appointed after a
judge's finding that the company conspired to fix e-book prices.
At a hearing, U.S. District Judge Denise Cote in Manhattan
denied Apple's request to stay an order requiring an external
compliance monitor pending the company's appeal.
"I want the monitorship to succeed for Apple," she said.
The judge also said there was "nothing improper" about a
declaration filed by a lawyer chosen to serve as monitor,
Michael Bromwich, that became the basis of Apple seeking his
Cote said she will promptly issue a decision explaining her
reasoning. Apple will then have 48 hours to seek an emergency
stay from the federal appeals court in New York, she said.
Theodore Boutrous, a lawyer for Apple, at the hearing said
Apple would appeal. A spokeswoman for the Justice Department
declined immediate comment.
The hearing was the latest to spill out of a growing dustup
stemming from Apple's objections to the monitor. Cote appointed
Bromwich to that role in October, three months after she found
Apple liable for conspiring with five publishers to raise e-book
In November, Apple complained he had been trying
aggressively to interview top executives, even though his
mandate called for him to review the company's antitrust
policies 90 days after his appointment.
Apple also complained about his proposed hourly fee rate of
$1,100, which Apple said gave him an incentive to run "as broad
and intrusive investigation as possible."
The Justice Department came to Bromwich's defense. He
himself meanwhile filed a declaration disputing Apple's claims
he had engaged in a "roving" investigation and detailing a
series of unsuccessful attempts to gain Apple's cooperation.
Apple subsequently moved for his disqualifaction, saying
Bromwich had a personal bias against the company and had engaged
in "grossly inappropriate behavior" through filing the
The case is U.S. v Apple Inc et al, U.S. District Court,
Southern District of New York, 12-2826.