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Elon Musk Accuses Apple of Anti-Competitive App Store Practices Favoring OpenAI

Elon Musk Accuses Apple of Anti-Competitive App Store Practices Favoring OpenAI

Elon Musk has stated that his AI startup, xAI, will take legal action against Apple regarding app store rankings. Musk alleges that Apple is unfairly favoring OpenAI, making it difficult for other AI apps to reach the number 1 spot.

Elon Musk: World-renowned tech entrepreneur and billionaire Elon Musk made a significant statement on Monday. He accused Apple, on behalf of his artificial intelligence startup xAI, of unfair practices in app store rankings. Musk claims that Apple is not allowing any AI app other than OpenAI to reach the top spot in the app store, which violates antitrust laws. xAI is expected to take legal action in this matter soon.

Musk's Allegation and the Beginning of the Dispute

Elon Musk wrote on his social media platform X (formerly Twitter), "Apple is behaving as though it is impossible for any AI company other than OpenAI to achieve a top ranking in the App Store. This is clearly an antitrust violation. xAI will take immediate legal action on this."

This statement comes at a time when OpenAI's ChatGPT app is number one on the 'Top Free Apps' list in the US iPhone app store. Meanwhile, Musk's xAI's Grok app is in fifth place, while Google's Gemini chatbot is much lower at 57th place.

However, Musk has not made any concrete evidence public to support his allegations. Apple, OpenAI, and xAI have not yet issued any official comments on this.

Lack of Transparency in App Store Rankings?

App store rankings are crucial because they directly affect an app's popularity, downloads, and business. Musk alleges that Apple's app store ranking system unfairly favors OpenAI, preventing new and other AI apps from competing on a level playing field.

Musk also questioned Apple on X why the Grok app, which is in fifth place, is not being included in the “essential” apps section, even though it is at the top in popularity. He asked if Apple is promoting certain apps for political reasons.

Increasing Scrutiny and Legal Challenges Against Apple

Musk's allegations come at a time when scrutiny over Apple's control of the app store is intensifying globally.

  • In the US, in April 2024, a judge stated that Apple had violated a court order directing it to increase competition in the app store. Apple is also facing a criminal contempt investigation in a case brought by Epic Games, the maker of 'Fortnite'.
  • In Europe, in April 2024, the European Union imposed a hefty fine of 500 million euros on Apple. The allegation was that Apple imposed technical and commercial restrictions that prevented app developers from offering their apps at lower prices outside the app store, which violates the Digital Markets Act.

Amid these legal and regulatory challenges, Musk's new allegation could put further pressure on Apple.

Partnership Between OpenAI and Apple

It is also worth noting that Apple has partnered with OpenAI, allowing ChatGPT to be better integrated into iPhones, iPads, and Macs. Through this collaboration, Apple is trying to strengthen AI technology in its devices.

However, Musk has questioned this partnership, asking whether Apple is giving special advantages to a particular party, which is affecting competition.

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