In a move that has raised eyebrows across the tech and legal sectors, a federal judge has opted to keep X and xAI’s antitrust lawsuit against Apple and OpenAI within the jurisdiction of the Fort Worth, Texas, federal court. Despite what Judge Mark Pittman described as “at best minimal connections” to the region for any of the involved companies, the case will proceed in this venue, sparking debate over forum shopping and its implications for antitrust litigation.
Judge Pittman’s four-page order, issued Thursday, was laced with subtle irony. He wryly suggested that Apple and OpenAI consider relocating their headquarters to Fort Worth, given their (assumed) preference for the lawsuit to be adjudicated there. This is a pointed jab at the practice of plaintiffs strategically choosing venues they believe will be more favorable to their case, a tactic known as forum shopping.
The subtext of Pittman’s decision highlights a growing concern about the potential for bias in judicial outcomes based on the specific district where a case is heard. The Fort Worth division of the U.S. Northern District of Texas federal courts has been a popular choice for plaintiffs with conservative leanings, due to the presence of two active judges appointed by Republicans.
X and Tesla, both under the control of Elon Musk, have previously filed lawsuits in this district. Musk, formerly an advisor to President Donald Trump, has been known to utilize the court systems in Texas. Judge Pittman, ironically a Trump appointee himself, has publicly criticized the practice of cherry-picking judicial districts.
Pittman’s order further illuminates the logistical challenges faced by the Fort Worth division, which handles a disproportionately heavy workload compared to the Dallas division, despite having fewer judges. He pointed out that Apple and OpenAI’s limited presence in Fort Worth, primarily consisting of Apple stores, is hardly sufficient justification for the case to be heard there, stating it would make almost all locations in the US an acceptable venue to hear the suit.
Currently, X Corp. is based in Bastrop, Texas, roughly 200 miles south of Fort Worth, while Apple and OpenAI maintain their headquarters in California. The judge’s urging for the companies to consider moving their corporate offices to the city underscores his frustration with the current state of affairs.
The legal challenge centers on X and xAI’s accusations that Apple and OpenAI are engaging in “anticompetitive schemes” aimed at monopolizing the AI market. Specifically, the lawsuit alleges that Apple unfairly favors OpenAI’s ChatGPT in its App Store rankings, disadvantaging competitors like xAI’s Grok. This battle reflects broader anxieties surrounding market dominance in the rapidly evolving AI landscape.
While Apple and OpenAI did not file a motion to transfer the case by the court’s deadline, Judge Pittman acknowledged their lack of objections as a consideration. He stated that he “respects” the Plaintiff’s venue choice, while acknowledging that the decision was not made lightly and it did not come without reservations.
The judge highlighted the limited options available, attributing the situation to the U.S. 5th Circuit Court of Appeals, which has consistently maintained a high threshold for transferring venue. Pittman cited two instances from the previous year where the 5th Circuit overturned his attempts to move a case involving banking trade groups and Consumer Financial Protection Bureau regulations to Washington, D.C., criticizing his court’s actions as an “abuse of discretion.”
OpenAI declined to comment, directing inquiries to its public filings. Requests for comment from X and Apple went unanswered. The larger implications of this case extend beyond the immediate parties involved. The case underscores the growing tension between established tech giants and emerging AI players, as well as the difficulty in regulating such a rapidly changing ecosystem. The outcome of this lawsuit could set a precedent for future antitrust cases in the AI sector, potentially shaping the competitive landscape for years to come.
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