Thursday, 16 January 2014

Judge Denies Apple's Request to Remove Monitor - Wall Street Journal



By Christopher M. Matthews



A federal judge denied a request by Apple Inc. to remove a lawyer she appointed to monitor the company's e-book pricing reform, saying it "failed to show" that it is in the "public interest" to do so.


U.S. District Judge Denise Cote in Manhattan also denied Apple's request to delay oversight of its antitrust compliance, saying there was no threat of "irreparable harm" to the company.


The judge appointed the monitor after she ruled last year in a civil antitrust case that Apple colluded with five major U.S. publishers to drive up the prices of e-books. But Apple and the monitor, attorney Michael Bromwich, have been fighting for months.


On Thursday, Judge Cote said that because Apple and its "highest executives" had conspired to drive up the prices of e-books, causing consumers "hundreds of millions of dollars in harm," it was in the public interest to ensure Apple's antitrust policies are reformed.


"While Apple would prefer to have no Monitor, it has failed to show that it is in the public interest to stop his work," Judge Cote wrote in a 64-page opinion filed Thursday.


"If anything, Apple's reaction to the existence of a monitorship underscores the wisdom of its imposition."


In November, Apple said Mr. Bromwich, a partner at Goodwin Procter LLP and a former inspector general at the Justice Department, had stepped beyond the scope of his appointment and was overcharging the company, citing a bill of $138,432.40 for his first two weeks of work. Mr. Bromwich's rate is $1,100 an hour, and his legal team's rate is $1,025.


Judge Cote said Thursday that Mr. Bromwich had acted properly and that if there was a dispute over fees, it could be addressed with the court.


A spokeswoman for Mr. Bromwich declined to comment Thursday.


A lawyer for Apple didn't immediately respond to a request for comment.


Judge Cote indicated during a contentious hearing Monday that she would deny Apple's request.


Apple's lawyer, Theodore Boutros, said during the hearing that Mr. Bromwich had an incentive to drag out the monitorship to increase his fees, and that the process could cost Apple millions of dollars and hinder its innovation.


Apple has said it would appeal the guilty verdict and the imposition of the monitor by Judge Cote. Mr. Boutros said Monday Apple would also appeal Judge Cote's forthcoming opinion, which was filed on Thursday.


Write to Christopher M. Matthews at christopher.matthews@wsj.com







via Technology - Google News http://ift.tt/19x9Scu

IFTTT

Put the internet to work for you.


via Personal Recipe 2598265


0 comments:

Post a Comment

 
Design by Free WordPress Themes | Bloggerized by Lasantha - Premium Blogger Themes | Online Project management