Background of the Lawsuit
Apple and
OpenAI, the developer of
ChatGPT, now face an ongoing legal challenge after a US federal judge denied their request to dismiss an antitrust lawsuit filed by Elon Musk's X Corp and its subsidiary
X.AI[2]. The case centers on accusations of unfair competitive practices stemming from Apple’s exclusive partnership with OpenAI.
Key Allegations
- The lawsuit asserts that Apple, which commands a 65 percent US market share in smartphones, and OpenAI, with approximately 80 percent of the generative AI chatbot sector, have conspired to restrain trade and monopolize their respective markets[1].
- X Corp claims that Apple and OpenAI’s exclusive integration of ChatGPT into iOS—making it the only AI chatbot natively available for Siri and other iPhone features—shuts out competition from rival AI tools such as Grok[1].
- The complaint references Apple deprioritizing the Grok app in app store rankings and delaying its updates, while allegedly favoring ChatGPT integration[1].
Legal Claims
The suit is based on several federal and state antitrust claims, including:
- Violation of Section 1 and Section 2 of the Sherman Act (alleged restraint of trade and conspiracy to monopolize)[1].
- Breach of the Texas Business and Commerce Code for "engaging in a contract, combination, or conspiracy in restraint of trade"[1].
As precedent, the suit draws parallels to the landmark United States v. Microsoft Corp. case, which focused on exclusive arrangements resulting in monopolistic behavior[1].
What X Corp Seeks
X Corp and X.AI are requesting:
- A permanent injunction to prevent Apple and OpenAI from continuing the alleged anticompetitive conduct[1].
- Treble damages, potentially amounting to billions of dollars, if they prove antitrust harm resulted from reduced competition, not ordinary business rivalry[1].
Industry and Legal Impact
This high-profile dispute highlights increasing legal scrutiny over major technology partnerships integrating advanced AI tools. Apple’s exclusive agreement with
OpenAI is just one example; the suit follows other major cases, such as class actions against
Anthropic for alleged misuse of copyrighted data[1].
Next Steps
As the case proceeds in the US District Court for the Northern District of Texas, Apple and
OpenAI remain obligated to defend their partnership and business practices in court[2]. The outcome could carry significant consequences for competition and integration strategies within the rapidly-advancing AI sector.
As the case proceeds in the US District Court for the Northern District of Texas, Apple and
OpenAI remain obligated to defend their partnership and business practices in court[2]. The outcome could carry significant consequences for competition and integration strategies within the rapidly-advancing AI sector.
As the case proceeds in the US District Court for the Northern District of Texas, Apple and
OpenAI remain obligated to defend their partnership and business practices in court[2]. The outcome could carry significant consequences for competition and integration strategies within the rapidly-advancing AI sector.
