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Apple Wins Temporary Stay on Court Monitor

Apple Inc. won a small victory on Tuesday in its attempt to oust a court-appointed monitor who is responsible for overseeing the company’s compliance with federal antitrust laws.

An appellate judge temporarily stayed the monitor’s work until a three-judge federal appeals panel can decide whether the stay should be kept in place longer while Apple undertakes a full challenge to the appointment of a monitor. Federal Judge Raymond Lohier Jr., in issuing the administrative stay, said Apple’s request for a permanent stay should be heard by the appellate panel “as soon as possible.”

The temporary stay comes days after Federal Judge Denise Cote rejected a request by Apple that she remove Michael Bromwich, a Washington lawyer whom she appointed as a monitor in October after determining the company conspired with five publishers to fix prices for e-books. Judge Cote also urged Apple and its lawyers to stop challenging Mr. Bromwich’s authority and let him do his work.

Apple contends that Mr. Bromwich is embarking on a “roaming” investigation of the company that goes beyond making sure the company puts in place procedures to comply with antitrust laws when it comes to pricing its products. The company also objects to Mr. Bromwich’s $1,100-an-hour fee and said his activities threaten to interfere with its operations.

In court papers, Apple contends Judge Cote’s appointment of a monitor over its objection is unprecedented in a “litigated civil antitrust case.” Apple also argues that judge has “vested the monitor with extremely broad” powers.

Apple contends the stay in the case is warranted because its appeal challenging the two-year monitor appointment is likely to prevail.