Man in violation of privacy law

Breaking news and expert analysis on legal and compliance issues

[Back To Home][Back To Archives]

From Antitrust Law Daily, February 10, 2014

Apple not entitled to stay of order imposing external compliance monitor

By Jeffrey May, J.D.

The U.S. Court of Appeals in New York City today denied Apple Inc.’s request for a stay of a provision in a final judgment issued in the federal/state e-books price fixing case imposing an external compliance monitor. Apple failed to demonstrate that it was entitled to a stay pending appeal (U.S. v. Apple Inc., February 10, 2014, per curiam).

In the federal/state antitrust enforcement action, Apple was found to have orchestrated a conspiracy among the publishers to fix retail prices for e-books. A final judgment was issued in September 2013. In addition to providing injunctive relief sought by the U.S. Department of Justice and the state attorney generals, the final judgment created the disputed monitor position.

Apple had objected to the conduct of Monitor Michael Bromwich. Apple requested a stay from the district court, asserting that the stay was appropriate because Bromwich should be disqualified. The district court denied the stay, and Apple moved for relief from the appellate court.

Until the appellate court hears the merits of the appeal, the monitor has been instructed to conduct his activities within the bounds of the order, as interpreted by the government. The government’s narrow interpretation of the monitor provision has been accepted by the appellate court.

According to the Department of Justice, “the injunction allowed the monitor to assess the appropriateness of the compliance programs adopted by Apple and the means used to communicate those programs to its personnel.” The injunction ensures Apple employees are being instructed on compliance but does not allow the monitor to investigate whether such personnel were in fact complying with the antitrust or other laws. The appellate court agreed with this interpretation that the monitor was empowered to demand only documents relevant to his authorized responsibility as so defined, and to interview Apple directors, officers, and employees only on subjects relevant to that responsibility.

The case is: 14-60.

Attorneys: Finnuala K. Tessier for Department of Justice. Theodore J. Boutrous, Jr. (Gibson, Dunn & Crutcher LLP) for Apple Inc.

Companies: Apple Inc.

MainStory: TopStory Antitrust AntitrustDivisionNews ConnecticutNews NewYorkNews VermontNews

Antitrust Law Daily

Introducing Wolters Kluwer Antitrust Law Daily — a daily reporting service created by attorneys, for attorneys — providing same-day coverage of breaking news, court decisions, legislation, and regulatory activity.


A complete daily report of the news that affects your world

  • View full summaries of federal and state court decisions.
  • Access full text of legislative and regulatory developments.
  • Customize your daily email by topic and/or jurisdiction.
  • Search archives for stories of interest.

Not just news — the right news

  • Get expert analysis written by subject matter specialists—created by attorneys for attorneys.
  • Track law firms and organizations in the headlines with our new “Who’s in the News” feature.
  • Promote your firm with our new reprint policy.

24/7 access for a 24/7 world

  • Forward information with special copyright permissions, encouraging collaboration between counsel and colleagues.
  • Save time with mobile apps for your BlackBerry, iPhone, iPad, Android, or Kindle.
  • Access all links from any mobile device without being prompted for user name and password.