Billionaire Elon Musk has openly accused tech giant Apple (AAPL) of unfair practices in how it ranks apps on the App Store. His AI startup, xAI, is preparing to take legal action, claiming Apple’s handling of app rankings violates antitrust laws and harms competition.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
For context, xAI, owned by Musk, is the AI company behind the Grok chatbot. The company is focused on building advanced AI systems to compete with major tech rivals.
Musk Accuses Apple of Favoring OpenAI
Musk accused Apple of blocking competition in the App Store, saying, “Apple is behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in the App Store, which is an unequivocal antitrust violation.” He also threatened that xAI will take “immediate legal action.”
In another post, he accused the iPhone maker of “playing politics.” He further questioned Apple’s app promotion choices, asking, “Why do you refuse to put either X or Grok in your ‘Must Have’ section?” He also pointed out that X ranks as the world’s No. 1 news app, while Grok holds the No. 5 spot among all apps. Notably, OpenAI’s ChatGPT currently holds the No. 1 spot among top free apps in the U.S. iOS store.
Nonetheless, Musk offered no evidence for his claim. Meanwhile, Apple, OpenAI, and xAI did not immediately respond for comment.
Apple Faces Growing Scrutiny over App Store Control
This isn’t the first time Apple has faced antitrust challenges. Musk’s remarks come amid mounting regulatory and industry scrutiny of the company’s control over its App Store.
In June, Apple lost its long-running legal fight with Fortnite maker Epic Games. The U.S. Circuit Court of Appeals denied Apple’s request to delay a court order that would require it to make App Store changes allowing more competition. The ruling also bars Apple from charging commissions on purchases made through external links and from controlling how developers direct users to these payment options.
Is Apple a Good Stock to Buy?
On TipRanks, AAPL stock has a consensus Moderate Buy rating among 29 Wall Street analysts. That rating is based on 16 Buys, 12 Holds, and one Sell assigned in the last three months. The average AAPL price target of $235.14 implies a 3.5% upside from current levels.
