Court Rejects Apple's Bid to Shake Off Corporate Monitor

By Joe Palazzolo 

A federal appeals court has rejected Apple Inc.'s efforts to rid itself of a corporate monitor appointed in the wake of a judge's finding the company liable for conspiring to raise the price of e-books.

Michael Bromwich, a former Justice Department inspector general, began assessing Apple's antitrust compliance policies six days after he was appointed by U.S. District Judge Denise Cote, who held the company liable for price-fixing conspiracy in a 2013 decision. Apple had argued that Mr. Bromwich began work prematurely and exceeded the scope of his mandate, and that his $1,000-an-hour fees were exorbitant.

The Second U.S. Circuit Court of Appeals in New York ruled Thursday that Mr. Bromwich's role, which the appeals court clarified in an earlier ruling, was "appropriately constrained" and said Apple could continue to raise objections in the lower court, if it believes he overstepped his bounds.

Apple is appealing Judge Cote's decision finding it liable for price-fixing. A ruling could come any day.

Lawyers for Apple didn't immediately respond to requests for comment.

Write to Joe Palazzolo at [e-mail]

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