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Elon Musk's xAI Sues Apple for Antitrust Violations Over App Store Favoritism Toward OpenAI

The dispute highlights antitrust concerns in tech markets, where dominant platforms face scrutiny...
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28.6

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  • Impact Level
    Medium
  • Scope Level
    National
  • Last Update
    2025-08-13
Key Impacts
Positive Impacts (1)
Legal & Consulting Services
Negative Impacts (4)
Mobile App Distribution Platforms
Apple Inc. (AAPL)
Artificial-Intelligence Software Developers
NASDAQ-100 Index
Total impacts: 7 | Positive: 1 | Negative: 4
Event Overview

The dispute highlights antitrust concerns in tech markets, where dominant platforms face scrutiny over preferential treatment of specific developers. Regulatory focus intensifies on algorithmic curation practices that may stifle competition, particularly in emerging AI sectors. Legal challenges test enforcement boundaries of fair market access principles against corporate gatekeeping practices.

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Apple Denies Elon Musk's Allegations of App Store Favoritism
2025-08-13 09:07

On August 11, Elon Musk, founder of xAI, accused Apple Inc. of violating antitrust laws by favoring OpenAI in its App Store rankings. Musk claimed that this preferential treatment hindered other artificial intelligence companies from achieving top ranking positions. He specifically alleged that Apple refused to list X or Grok in the 'must-have apps' recommendation section and announced that xAI would take immediate legal action against the company.

In response, an Apple spokesperson denied the allegations, asserting that the App Store's rankings and recommendations are determined by objective criteria, including algorithms and expert-curated lists, and that Apple does not engage in favoritism. The statement emphasized Apple's commitment to fair competition among developers and providing users with a safe and engaging app discovery environment.

Elon Musk to Sue Apple Over Alleged App Store Antitrust Violations
2025-08-12 19:04

Tesla CEO Elon Musk announced on Monday that his artificial intelligence company, xAI, will file a lawsuit against Apple for alleged antitrust violations in the App Store. In a series of posts on X, the social media platform Musk owns, he claimed Apple is unfairly favoring OpenAI's ChatGPT over other AI applications, including xAI's own chatbot, Grok.

Musk accused Apple of making it "impossible for any AI company besides OpenAI to reach #1 in the App Store," calling this an "unequivocal antitrust violation." Grok is currently ranked sixth among the top free apps on iPhones in the United States, while ChatGPT holds the top spot. Musk also noted that neither X nor Grok appeared in Apple's "Must Have" recommendations, despite X being "the #1 news app in the world."

The official Grok account posted that Apple’s App Store editorial selection "appears biased, favoring established AI like ChatGPT over innovative challengers," and that this bias may stem from caution towards Grok's "unfiltered style"—but argued that such curation limits competition.

This conflict follows Apple's June 2024 partnership with OpenAI to integrate ChatGPT into Apple devices. Musk had previously threatened to ban Apple devices at his companies in response to that deal, though it is unclear if he followed through.

Apple’s App Store has faced similar scrutiny in the past. In April 2024, a federal judge ruled Apple violated a court mandate to allow greater competition following Epic Games' 2021 antitrust case. That same month, the European Commission fined Apple €500 million for restricting developers from directing users toward alternative payment systems.

CNN has reached out to xAI, Apple, and OpenAI for comments on Musk's claims and his planned legal action.

Elon Musk Threatens Immediate Legal Action Against Apple Over AI App Store Rankings
2025-08-12 16:03

On Monday, Elon Musk announced via posts on the social media platform X that his artificial intelligence company, xAI, will take immediate legal action against Apple. Musk alleged that Apple is favoring rival AI developers, particularly OpenAI, in its App Store rankings, in what he described as a breach of antitrust regulations.

Musk claimed that Apple is making it “impossible for any AI company besides OpenAI to reach #1 in the App Store,” referring to it as “an unequivocal antitrust violation.” At the time of his statements, xAI’s AI model, Grok, was ranked sixth in the U.S. App Store’s Top Free Apps category for iPhones, while OpenAI’s ChatGPT held the top position.

In a pinned post, Musk questioned Apple’s omission of his products from the App Store’s "Must Have" section, despite X being the “#1 news app in the world,” asking, “Are you playing politics? What gives?” xAI’s Grok account on X also posted that Apple’s App Store curation appears biased toward established AI apps like ChatGPT over “innovative challengers” such as Grok, suggesting that editorial caution toward xAI’s “unfiltered style” was stifling competition.

These allegations follow Apple’s June 2024 partnership with OpenAI to integrate ChatGPT into its devices, a move that previously prompted Musk to threaten a ban on Apple devices across his companies, including X, Tesla, and SpaceX.

Apple has previously faced legal scrutiny over its App Store operations. In April 2025, a federal judge in California ruled that Apple had violated a court order aimed at reforming its App Store to encourage more competition among app downloads and payment methods, stemming from Epic Games’ 2021 antitrust suit. Also in April 2025, the European Commission fined Apple €500 million (approximately $570 million) for breaching digital competition laws by restricting developers from guiding users to alternative payment options.

CNN has reached out to xAI, Apple, and OpenAI for comment regarding Musk’s most recent claims and legal threat.

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