Apple: This Antitrust Monitor Has to Go
If you ask Apple (NASDAQ:AAPL) — at least, if you ask Gibson, Dunn, & Crutcher, a prestigious Los Angeles law firm representing the company — court-appointed antitrust monitor Michael Bromwich is unfit to serve as the company’s external compliance monitor. Writing on behalf of Apple on Tuesday, the law firm spells out exactly why it believes Bromwich should be disqualified from his position. According to the firm, Bromwich is biased, oversteps his authority, and abuses the fee structure for personal financial gain.
Bromwich, formerly an inspector general with the U.S. Justice Department, was appointed to serve as external compliance monitor at Apple after it was ruled by Judge Denise Cote in United States of America v. Apple Inc. et al. that the company violated the Sherman Antitrust Act when it ”conspired to raise, fix, and stabilize the retail price for newly released and bestselling trade e-books.” Bromwich was sent in to make sure Apple swept the skeletons out of its closets and changed its behavior, but the last thing Apple wanted in the wake of losing the landmark e-book case was a chaperone — especially one it believed to be aggressive and biased.
Apple executives were never happy with the ruling to begin with. Losing the case meant the end of a substantial and artificial price hike, which meant less cash flow in Apple’s e-book department.