Apple and OpenAI’s Legal Setback in Musk’s Antitrust Case

Key Takeaways:

Judge allows Musk’s lawsuit to proceed: A federal judge denied Apple and OpenAI’s request to dismiss antitrust claims brought by Elon Musk’s X Corp and xAI.
Alleged monopoly over iPhone AI access: The lawsuit claims Apple made ChatGPT the default AI assistant, sidelining rivals like Grok from equal platform visibility.
Apple and OpenAI deny exclusivity: Apple argues that other chatbots remain available, while OpenAI accuses Musk of harassment and plans to fight the case.
Potential impact on AI platform defaults: Legal experts say this case could reshape how antitrust law treats default AI integrations on dominant devices like iPhones.
No verdict yet, trial phase begins: The case now moves to discovery and evidence review; Apple and OpenAI could still settle before any trial takes place.

Apple and OpenAI have encountered a significant legal hurdle in their effort to dismiss an antitrust lawsuit initiated by Elon Musk. A federal judge has granted X Corp. and xAI the opportunity to pursue claims that Apple and OpenAI allegedly conspired to monopolize the smartphone market and generative AI chatbots.

Judge Refuses to Dismiss Musk’s Allegations, Case Advances

U.S. District Judge Mark Pittman in Fort Worth has turned down motions from Apple and OpenAI to throw out the case. While this decision does not confirm Musk’s allegations, it opens the door for a comprehensive legal examination of his claims.

Judge Pittman noted that the court will address factual disputes at a later stage. For now, Musk’s legal team has successfully crossed an important procedural hurdle as they move toward a trial.

Allegations of Monopoly by Apple OpenAI Partnership

The lawsuit dates back to August following Apple’s June 2024 announcement that ChatGPT would serve as the primary AI assistant integrated into Apple Intelligence across iPhones and other devices.

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According to the complaint, this partnership gives ChatGPT immediate reach to millions of iPhones and limits opportunities for competitors such as xAI’s Grok to gain similar visibility on iOS.

Claims against Apple in the lawsuit include:

Establishing ChatGPT as the sole AI assistant for Apple Intelligence
Highlighting ChatGPT in the App Store’s Must Have Apps list
Excluding competitors from this list despite high rankings in App Store categories

The lawsuit states that ChatGPT controls at least 80 percent of the generative AI chatbot market while Grok accounts for only a few percent.

Apple and OpenAI Deny Antitrust Violations

Apple disputes any suggestion of exclusivity and told the court that choosing one partner first is not unlawful.

Apple also maintains that competition is not blocked because:

Other chatbots remain accessible on iPhones through apps and browsers
X and Grok rank high in App Store categories showing continued competition

OpenAI has responded more aggressively, calling the lawsuit an example of Mr Musk’s ongoing pattern of harassment and pledging to defend that position in court.

Implications for AI Default Settings on Smartphones

Experts quoted by Decrypt believe the case may influence how antitrust law defines dominance in the AI sector. The main question is whether making a single AI assistant the default on a major platform such as the iPhone counts as illegal exclusion of rivals.

Legal analysts say the issue is still unsettled worldwide, and future evidence will determine whether Apple’s partnership represents:

An exclusive deal that harms competition
A normal competitive arrangement in a fast growing technology sector

The lawsuit aims to secure damages worth billions of dollars.

What Lies Ahead

The ruling only allows the lawsuit to move forward and does not resolve the core accusations. The next phase will include discovery, fact analysis and a potential trial if there is no settlement.