The German retired from international duty last month, citing racism from the football association as reasoning for his decision.
"Ozil has cleverly brought racism into the game to distract attention from the fact that he has not played football well for a long time," Hoeness told Sky Sport.
"I found it impossible that the DFB president had to get involved to solve the Ozil and Gundogan issue.
"Özil should have been forced to give an explanation, that was no small matter. He is a well-marketed product, who is represented by his agency much better than he is as a player.
"Joachim Low should have gone to Arsenal more often and had a look at him. He probably would not have taken him to the World Cup for sporting reasons, and then we would have been spared the whole drama."