Ozil, 29, was rewarded with the captain's armband by new head coach Unai Emery in the absence of Laurent Koscielny.
However, the former Germany international, who has often been accused of not rising to the occasion in high-profile fixtures, was substituted in the London Derby defeat to Chelsea over the weekend.
This prompted Bayern president Hoeness's latest attack on the talented playmaker, who retired from international duty in the wake of alleged racism after being photographed with Turkey President Recep Tayyip Erdogan before the 2018 FIFA World Cup.
Hoeness further claimed the entire debacle could have been avoided had the Gunners midfielder had issued an apology.
"We would have been spared the whole theatre," Hoeness told Sky Sports.
"Özil should have been forced to make a statement. But leaving that without explanation was probably the biggest mistake ever.
"I've been watching the player for a long time and he's a well-marketed product whose image is a lot better than he is, which is the only big blame for me.
"Had Löw gone to Arsenal more often in London and looked at him properly, he probably would not have taken him for sporting reasons.
"It is a miracle that he is now captain at Arsenal."