Tech company X Corp. along with xAI have lodged a billion-dollar antitrust complaint against Apple and OpenAI, alleging unfair business practices.
In a significant development, tech giants Apple Inc. and OpenAI entities are being sued by X Corp. and xAI LLC for conspiring to monopolize the generative AI chatbot and smartphone markets. The lawsuit, filed in the U.S. District Court for the Northern District of Texas, centers on Apple's exclusive integration of ChatGPT as the default generative AI chatbot on iPhones, a move that the plaintiffs argue creates "moats" protecting both companies from emerging competition.
The lawsuit portrays Apple as strategically using its platform control to manipulate app rankings, delay approvals for threatening technologies, and exclude competitors that could reduce iPhone dependency and commoditize smartphone hardware. The case may influence how platform companies structure AI partnerships and whether exclusive arrangements face increased regulatory scrutiny.
The complaint emphasizes smartphones' role as gateways to digital services, arguing that Apple's control over this critical infrastructure allows it to determine which AI services reach consumers and under what conditions, effectively controlling market access for competitors. The lawsuit defines smartphones in the U.S. as a relevant antitrust market, with Apple possessing "significant market power" through its control of approximately 65% of the market.
The lawsuit alleges Apple of systematically manipulating App Store rankings and review processes to favor its own interests while harming competitors. Proton, a privacy company, joined an antitrust challenge against Apple's App Store policies in June 2025.
The plaintiffs argue that AI capabilities will be "a cornerstone of super app evolution," making X and xAI's development of AI-powered super apps a direct threat to both Apple's smartphone monopoly and OpenAI's chatbot dominance. The lawsuit seeks over $1 billion in damages and targets exclusive arrangements that harm competition and innovation.
The case represents a significant test of antitrust law's application to AI market competition and platform ecosystem control. Its success will depend on whether courts accept plaintiffs' market definitions and find that the alleged arrangements constitute illegal restraints on trade rather than legitimate business partnerships.
The lawsuit also highlights tensions between established platforms and emerging AI companies seeking market access and user engagement. It is part of broader antitrust scrutiny of technology companies, reflecting growing concerns about market dominance and the potential for anti-competitive practices in the AI and tech sectors.
Apple's partnership with OpenAI in 2025 involves exclusive integration of ChatGPT into iPhones, iPads, and Macs, giving ChatGPT privileged access to iOS features such as Siri integration, which accelerates its development compared to competitors. This has led to legal accusations of monopolistic behavior and App Store manipulation by Apple and OpenAI, restricting competition in the generative AI chatbot market and smartphone AI capabilities in the U.S.
The lawsuit against Apple and OpenAI entities is a significant milestone in the ongoing debate about the balance between innovation, competition, and market dominance in the tech industry. As the case progresses, it will undoubtedly shape the future of AI market competition and platform ecosystem control.
