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Apple and OpenAI Seek Dismissal of Elon Musk’s Antitrust Lawsuit

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Apple and OpenAI have jointly asked a U.S. judge to dismiss a lawsuit filed by Elon Musk’s xAI, which accuses the two companies of engaging in anticompetitive behavior through their AI partnership.

The lawsuit, filed in August, alleges that Apple’s deal with OpenAI — which integrates ChatGPT into iPhones, iPads, and Macs — is “exclusive” and unfairly limits competition by sidelining Musk’s X platform and its Grok chatbot.

APPLE AND OPENAI REJECT CLAIMS OF MONOPOLY

In court filings on Tuesday, Apple’s lawyers stated that the company’s deal with OpenAI is not exclusive and does not restrict competition in any way.

“Apple and OpenAI’s agreement is expressly not exclusive, and it is public and widely known that Apple intends to partner with other generative AI chatbots,” Apple’s filing said.

OpenAI echoed this argument, accusing Musk of engaging in a “campaign of lawfare” — using lawsuits to attack competitors — and said xAI had failed to demonstrate any concrete harm.

“Musk’s claims are purely speculative,” OpenAI’s attorneys wrote. “xAI has not alleged any direct or anticompetitive harm resulting from ChatGPT’s integration as an option on certain iPhones.”

BACKGROUND OF THE DISPUTE

Apple and OpenAI’s collaboration, announced in June 2024, made ChatGPT accessible across Apple’s ecosystem, allowing users to access the chatbot through Siri and other built-in applications.

Musk, who co-founded OpenAI in 2015 as a nonprofit before it transitioned into a for-profit structure under CEO Sam Altman, has since become one of its harshest critics. He argues that OpenAI has abandoned its original mission of open and safe AI development.

Musk’s company xAI, launched in 2023, operates the Grok chatbot integrated into his social media platform X (formerly Twitter). xAI’s lawsuit seeks billions in damages, claiming Apple’s partnership with OpenAI harms fair market competition.

Musk is also pursuing a separate lawsuit against OpenAI and Altman in California federal court, seeking to reverse the company’s for-profit conversion.

xAI has not yet responded publicly to Apple and OpenAI’s latest motion for dismissal.

UK Renews Push for Apple to Open Cloud Access for British User Data

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The British government has issued a new order to Apple (AAPL.O) demanding the creation of a backdoor into its iCloud storage service — this time limited to British users’ data, the Financial Times reported on Wednesday.

The move marks the government’s second attempt to gain access to encrypted data stored by Apple, following the company’s appeal earlier this year against a broader order that sought access to both UK and U.S. citizens’ data. The earlier mandate was dropped after U.S. intelligence officials, including Director of National Intelligence Tulsi Gabbard, warned that such access could expose sensitive personal data to cybercriminals and foreign governments.

APPLE MAINTAINS REFUSAL TO CREATE BACKDOOR

Apple reiterated its long-standing position that it will not build a backdoor into its systems, citing user privacy and global security risks. “We have never built a backdoor or master key to any of our products or services — and we never will,” Apple said in a statement on Wednesday.

The company also confirmed that it was forced to withdraw its Advanced Data Protection (ADP) feature for UK users in February due to the government’s demands. The feature, which offers end-to-end encryption for iCloud data, ensures that only the user — not even Apple — can decrypt stored information.

“Apple is still unable to offer Advanced Data Protection in the United Kingdom to new users, and current users will eventually need to disable this feature,” the company said. “ADP protects iCloud data with end-to-end encryption, meaning only the user can access it on trusted devices.”

GOVERNMENT DEFENDS SECURITY ACTIONS

A spokesperson for the UK government declined to confirm the existence of the new order but said:

“We will always take all actions necessary at the domestic level to keep UK citizens safe.”

The latest demand comes under Britain’s Investigatory Powers Act, often called the “Snooper’s Charter,” which allows the government to compel tech firms to provide access to encrypted communications under certain conditions.

Apple’s ongoing appeal against the earlier order is being heard by the Investigatory Powers Tribunal (IPT), the UK’s top court for intelligence-related cases.

The standoff underscores the growing global tension between governments seeking digital surveillance capabilities and technology companies defending encryption as a cornerstone of privacy and cybersecurity.

Apple, Google, and Meta Must Face Lawsuits Over Casino-Style Gambling Apps

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A U.S. federal judge has ruled that Apple, Google, and Meta Platforms must face lawsuits accusing them of promoting and profiting from illegal casino-style gambling apps, rejecting their efforts to dismiss the claims under Section 230 of the Communications Decency Act.

In a decision issued Tuesday, Judge Edward Davila of the U.S. District Court in San Jose, California, denied the companies’ main argument that the federal law shields them from liability for third-party content, saying the lawsuits focus on their active role in processing payments and collecting commissions, not merely hosting apps.

The lawsuits, filed as proposed class actions, allege that Apple’s App Store, Google Play Store, and Meta’s Facebook enabled and profited from apps simulating “Vegas-style” slot machine gambling that have led to user addiction, depression, and even suicidal behavior. The plaintiffs claim the companies brokered and collected 30% commissions — estimated to exceed $2 billion — from in-app purchases.

While some state-level claims were dismissed, Davila allowed most consumer protection claims to proceed, except those filed in California. He stated that the platforms’ activities went beyond publishing and that providing “neutral tools” did not absolve them from responsibility.

“The crux of plaintiffs’ theory is that defendants improperly processed payments for social casino apps,” Davila wrote. “It is beside the point whether that activity turns defendants into bookies or brokers.”

The companies now have the option to appeal immediately to the 9th U.S. Circuit Court of Appeals, with Davila acknowledging the national importance of Section 230 immunity questions.

The ongoing litigation, which began in 2021, consolidates several related cases:

  • In re Apple Inc. App Store Simulated Casino-Style Games Litigation (No. 21-md-02985)

  • In re Google Play Store Simulated Casino-Style Games Litigation (No. 21-md-03001)

  • In re Facebook Simulated Casino-Style Games Litigation (No. 21-02777)

The plaintiffs are seeking unspecified compensatory and triple damages, along with other remedies.