Elon Musk’s companies sue Apple, OpenAI over alleged anticompetitive scheme
The complaint noted that in June 2024, Apple and OpenAI announced that Apple would integrate OpenAI's ChatGPT into Apple's iPhone operating system. Apple and OpenAI's "exclusive arrangement" have made ChatGPT the only generative AI chatbot integrated into the iPhone.
Washington: Two of Elon Musk’s companies on Monday sued Apple and OpenAI, accusing the pair of “perpetrating their anticompetitive scheme” to maintain monopolies in smartphone and generative AI markets.
The lawsuit was filed by Musk’s AI startup xAI and social media platform X in the U.S. District Court for the Northern District of Texas.
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The complaint noted that in June 2024, Apple and OpenAI announced that Apple would integrate OpenAI’s ChatGPT into Apple’s iPhone operating system. Apple and OpenAI’s “exclusive arrangement” have made ChatGPT the only generative AI chatbot integrated into the iPhone.
“This makes it hard for competitors of ChatGPT’s generative AI chatbot and super apps powered by generative AI chatbots to scale and innovate … Apple has taken further steps to protect its monopoly in smartphones and to preference OpenAI by deprioritizing the apps of competing generative AI chatbots and super apps in its App Store rankings, and it has dragged out its App Store app review processes for those competitors,” the complaint stated.
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It noted that xAI and X have both been injured by this conduct, which has already caused them significant damages that will amount to billions of U.S. dollars in combined lost sales and enterprise values.
Earlier this month, Musk threatened Apple with “immediate legal action,” saying in a post on X that the smartphone giant is behaving in a manner that “makes it impossible for any AI company besides OpenAI to reach #1 in the App Store, which is an unequivocal antitrust violation.”
An Apple spokesperson said in a statement that the App Store was designed to be “fair and free of bias,” and it features “thousands of apps through charts, algorithmic recommendations, and curated lists selected by experts using objective criteria.”
