Elon Musk Threatens to Sue Apple Over App-Store Rankings — What’s at Stake?

Elon Musk has publicly announced that his AI company, xAI, intends to take legal action against Apple, alleging that the iPhone maker has engaged in anticompetitive practices by manipulating App Store rankings to favor OpenAI’s ChatGPT and other competing AI products over xAI’s Grok chatbot (Reuters, 2025). The dispute underscores long-running tensions between Musk and Apple, while also highlighting growing concerns about platform neutrality, antitrust enforcement, and the distribution of AI tools.

Timeline of Events

On August 11–12, 2025, Musk posted on X (formerly Twitter) that xAI would “take immediate legal action” against Apple for what he described as an “unequivocal antitrust violation.” He alleged that App Store curation and ranking decisions were systematically preventing Grok from reaching prominent placement, despite strong user downloads (Financial Times, 2025). Musk linked this alleged bias to Apple’s recent deepening of ties with OpenAI, which has seen its chatbot integrations promoted within Apple’s own software ecosystem.

Key Parties

Plaintiff: xAI — Musk’s AI venture, best known for the Grok chatbot.
Defendant: Apple Inc. — operator of the App Store and primary gatekeeper for app distribution on iOS devices.

This potential lawsuit comes amid broader regulatory scrutiny of Apple’s App Store policies, which have faced legal and legislative challenges in both the U.S. and the EU (Investopedia, 2025).

Legal Basis for the Allegations

Musk’s claims appear to center on two main antitrust arguments:

Platform Discrimination — That Apple is leveraging its control over app discovery to give preferential treatment to certain AI products (notably OpenAI’s) over direct competitors.
Abuse of Market Power — That Apple’s dominance in the mobile app distribution market enables it to materially disadvantage competitors without recourse.

These arguments align with past cases and regulatory findings against platform gatekeepers, although proving intentional discrimination in court will require internal Apple data, communications, or documented ranking policies.

Current Status of Legal Proceedings

As of publication, no formal complaint has been filed in court. Musk’s statements amount to a public declaration of intent to litigate, which may be used to exert pressure on Apple in the court of public opinion and to potentially attract regulatory interest (CNN, 2025). Whether xAI proceeds to formal litigation or seeks a private resolution remains to be seen.

Possible Jurisdictions and Laws

A formal case could be filed under U.S. antitrust statutes, such as the Sherman Act, or under state-level unfair competition laws. The European Union’s Digital Markets Act (DMA) may also be relevant if regulators deem Apple’s alleged behavior to violate gatekeeper obligations — particularly in relation to search ranking transparency and equal access.

Apple’s Likely Defense

Apple is expected to argue that App Store rankings are determined by neutral, objective criteria such as downloads, ratings, and engagement, and that editorial curation falls within its platform management rights. The company has historically maintained that such policies are designed to enhance user experience and ensure quality control.

Potential Industry Impact

This dispute may have implications far beyond Musk and Apple. If proven, the alleged manipulation of rankings could set precedents for how AI products are discovered on dominant platforms. Conversely, if Apple prevails, it could reinforce the legal standing of curated marketplaces to determine app visibility based on proprietary criteria.

Q1: What is the primary legal claim Musk is considering against Apple?
Musk is considering filing an antitrust lawsuit alleging platform discrimination and abuse of market power, arguing that Apple has intentionally manipulated App Store rankings to favor certain AI products over xAI’s Grok.

Q2: Has a lawsuit been formally filed?
As of the latest reports, Musk has announced his intention to sue but no formal complaint has been submitted in court.

Q3: Could regulatory agencies intervene?
Yes. In addition to litigation, regulators — particularly in the EU — may review Apple’s conduct under the DMA or existing antitrust laws if credible evidence of anti-competitive ranking practices emerges.

Q4: What are the potential outcomes?
Potential outcomes range from private settlement or ranking policy changes, to full litigation resulting in judicial rulings or regulatory mandates.

Sources

Reuters (2025) – Musk says xAI to take legal action against Apple over App Store rankings
Financial Times (2025) – Coverage and analysis of Musk’s allegations and Apple’s App Store practices
Investopedia (2025) – Legal framing and market context for Musk’s threatened lawsuit
CNN (2025) – Reporting on Musk’s statements and industry reaction