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Musk’s Firms File Lawsuit Against Apple, OpenAI
(MENAFN) Elon Musk’s companies xAI and social media platform X filed a lawsuit Monday against Apple and OpenAI, accusing the tech giants of orchestrating an anticompetitive scheme to dominate the smartphone and generative AI markets.
The legal action was initiated in the U.S. District Court for the Northern District of Texas, where Musk’s AI startup and platform allege that Apple and OpenAI’s June 2024 deal unfairly cements ChatGPT as the exclusive generative AI chatbot integrated into the iPhone operating system.
The complaint details, "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."
xAI and X claim they have suffered extensive harm, forecasting combined losses reaching billions of dollars in sales and enterprise value as a direct result of Apple and OpenAI’s actions.
Earlier this month, Musk warned Apple of "immediate legal action" via a post on X, asserting that the company’s conduct "makes it impossible for any AI company besides OpenAI to reach #1 in the App Store, which is an unequivocal antitrust violation."
In response, an Apple spokesperson defended the App Store’s neutrality, stating it was created to be "fair and free of bias," offering "thousands of apps through charts, algorithmic recommendations, and curated lists selected by experts using objective criteria."
The legal action was initiated in the U.S. District Court for the Northern District of Texas, where Musk’s AI startup and platform allege that Apple and OpenAI’s June 2024 deal unfairly cements ChatGPT as the exclusive generative AI chatbot integrated into the iPhone operating system.
The complaint details, "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."
xAI and X claim they have suffered extensive harm, forecasting combined losses reaching billions of dollars in sales and enterprise value as a direct result of Apple and OpenAI’s actions.
Earlier this month, Musk warned Apple of "immediate legal action" via a post on X, asserting that the company’s conduct "makes it impossible for any AI company besides OpenAI to reach #1 in the App Store, which is an unequivocal antitrust violation."
In response, an Apple spokesperson defended the App Store’s neutrality, stating it was created to be "fair and free of bias," offering "thousands of apps through charts, algorithmic recommendations, and curated lists selected by experts using objective criteria."
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