• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic

2

The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting

3

Amazon's record Prime Day masks a darker truth: Americans are spending more and getting less

1

Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic

2

The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting

3

Amazon's record Prime Day masks a darker truth: Americans are spending more and getting less
TechApple

Judges hear Apple’s gripes over antitrust monitor

By
Roger Parloff
Roger Parloff
Down Arrow Button Icon
By
Roger Parloff
Roger Parloff
Down Arrow Button Icon
March 10, 2015, 5:51 PM ET
Apple Unveils Touch-Screen Tablet Device
Steve Jobs, chief executive officer of Apple Inc., speaks about the iBooks application during the debut of the Apple iPad tablet at the Yerba Buena Center for the Arts Theater in San Francisco, California, U.S., on Wednesday, Jan. 27, 2010. Apple Inc., trying to expand beyond the Macintosh, iPod and iPhone, introduced the iPad, a tablet computer with a touch screen. Photographer: Tony Avelar/Bloomberg via Getty ImagesPhotograph by Tony Avelar — Bloomberg via Getty Images
Add Fortune on Google for similar content.

Though much of the business world is now focused on the Apple Watch launch, Apple’s lawyers today were still sweeping up after its messy iBooks launch of five years ago.

This morning the U.S. Court of Appeals for the Second Circuit in Manhattan heard the company’s many grievances regarding an antitrust monitor that a federal judge appointed to oversee certain of the company’s operations in October 2013, and whom Apple (AAPL) claims immediately began running amok.

The panel seemed intrigued by the issues, peppering lawyers for both sides with questions for an hour—about twice the scheduled time allotment.

The monitor, Michael Bromwich, was supposed to oversee the company’s development of new antitrust compliance policies after U.S. District Judge Denise Cote found Apple liable for conspiring with five major publishers to fix the prices of ebooks in April 2010. The company’s appeal from that ruling was heard last December by a different Second Circuit panel, which has not yet ruled. (For a feature story on the issues presented in that appeal, see “Second Bite: Can Apple clear its name in the ebooks drama.”)

In today’s appeal, Apple, represented by Ted Boutrous, Jr., of Gibson Dunn & Crutcher, claimed that Bromwich, a former inspector general for the Department of Justice, has roamed far beyond his narrow portfolio of legitimate duties to the point where he has violated statutory and constitutional limits on the powers that any such court-appointed officer can wield. It is asking that Bromwich be disqualified, and that no one be appointed to replace him until its main appeal has been decided.

The U.S. Department of Justice, represented by Finnuala Tessier, responded that, because Judge Cote had already found Apple liable of an antitrust violation, the monitor’s activities were both lawful and warranted.

There is surprisingly little case law directly on point, since most monitors are voluntarily agreed to by the defendant, in the sense that they are created under the terms of a consent decree or nonprosecution agreement. Bromwich, in contrast, was imposed upon Apple against Apple’s will. While his powers must be, therefore, more constricted, no one’s sure just how constricted.

At least one judge on the three-judge panel—Circuit Judge Dennis Jacobs—seemed to be highly troubled by Bromwich’s conduct, particularly a letter he wrote in which he complained to Apple executives and board members that the company was using its outside counsel as a “shield,” and suggesting that they let him interview them without Gibson Dunn present.

Judge Jacobs asked Tessier if it wasn’t “odd” for Bromwich to complain that Apple was “using outside counsel as a shield? Counsel is a shield in our system.”

Though Bromwich backed away from the request after Gibson Dunn hit the roof, Judge Jacobs suggested that the mere request was relevant to whether Bromwich should be disqualified for bias.

Nevertheless, to prevail, Apple must rope in at least two judges, and the other two panelists today, Circuit Judge Ray Lohier and District Judge Jesse Furman, were far harder to read.

In that respect, the hearing was reminiscent of Apple’s main appeal, which was heard last December by a panel that included two of the same judges, Jacobs and Lohier. On that occasion, Jacobs seemed highly dubious of whether Apple’s conduct amounted to an antitrust violation, while Lohier and the third judge, Debra Ann Livingston, were noncommittal at best.

It’s not known when the court will rule on either matter. An Apple victory in the main appeal might render the questions heard today moot.

Bromwich has interviewed close to 40 Apple officers since his appointment, including CEO Tim Cook and nearly every one of the other nine members of his executive team, plus most of the company’s board of directors. (Though most of these individuals do not get involved in antitrust matters, the government and monitor Bromwich have argued that he needs to understand the company and its culture to properly perform his job.) He also interviewed a publisher or two before Apple objected, Justice Department attorney Tessier acknowledged in today’s argument.

Bromwich’s hourly fee for his work on the matter is not public, but Judge Jacobs demanded today that it be revealed to the judges by Thursday. Bromwich had originally sought $1100 per hour, plus a 15% “surcharge,” for a total of $1265 an hour.

The rate would have made him “one of the best paid lawyers in the realm,” Judge Jacobs commented today. After a mediation, the fee was lowered to its current, nonpublic level. Jacobs suggested that the amount would be relevant to whether Bromwich had an incentive to unduly expand and protract his assignment.

Under the terms of Judge Cote’s injunction, Bromwich’s term lasts until October, though he and the government may request an extension.

Watch more Apple news from Fortune:


 

 

 

 

About the Author
By Roger Parloff
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

Digital transformation technology strategy, IoT, internet of things. Businessman using smart phone with AI and Digital Icons design.
AICFO Daily
Top CFOs warn AI success depends on training employees, not just buying technology
By Sheryl EstradaJune 25, 2026
36 minutes ago
Samin Menon (left) Neil Movva (right)
Startups & VentureVenture Capital
Exclusive: A former Apple engineer thinks AI infrastructure is built for the wrong future. Investors just gave him $80 million to fix it
By Lily Mae LazarusJune 25, 2026
1 hour ago
Lux Capital cofounder Josh Wolfe’s limited-odds, high-stakes 2027 predictions
NewslettersTerm Sheet
Lux Capital cofounder Josh Wolfe’s limited-odds, high-stakes 2027 predictions
By Allie GarfinkleJune 25, 2026
3 hours ago
Micron drives global rally tech stock rally as traders abandon their fear of an AI bubble
InvestingMarkets
Micron drives global rally tech stock rally as traders abandon their fear of an AI bubble
By Jim EdwardsJune 25, 2026
3 hours ago
OpenAI CEO Sam Altman (left) and Broadcom CEO Hock Tan holding their new AI chip, “Jalapeño.” (Photo courtesy OpenAI)
NewslettersFortune Tech
OpenAI and Broadcom’s AI chip has a name: Jalapeño
By Andrew NuscaJune 25, 2026
4 hours ago
What bubble? JPMorgan says the $5.5 trillion AI capex explosion is profitable–for now
AIFinance
What bubble? JPMorgan says the $5.5 trillion AI capex explosion is profitable–for now
By Sheryl EstradaJune 25, 2026
4 hours ago

Most Popular

Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic
Success
Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic
By Orianna Rosa RoyleJune 24, 2026
1 day ago
The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting
Economy
The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting
By Jacqueline MunisJune 24, 2026
1 day ago
Amazon's record Prime Day masks a darker truth: Americans are spending more and getting less
Retail
Amazon's record Prime Day masks a darker truth: Americans are spending more and getting less
By Nick LichtenbergJune 24, 2026
23 hours ago
Ray Dalio just finished a 10-day trip to China. He says global leaders know America ‘doesn’t have what it takes to fight to maintain its empire’
Asia
Ray Dalio just finished a 10-day trip to China. He says global leaders know America ‘doesn’t have what it takes to fight to maintain its empire’
By Nick LichtenbergJune 24, 2026
1 day ago
After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup
Success
After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup
By Orianna Rosa RoyleJune 23, 2026
2 days ago
Trump’s international student crackdown kicked off a domino effect that could shave nearly $500 billion off the economy
Economy
Trump’s international student crackdown kicked off a domino effect that could shave nearly $500 billion off the economy
By Tristan BoveJune 24, 2026
19 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.