Why Are Two Of The World's Richest Men Battling It Out In Court? Arnault Vs. Elon Musk's X

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Elon Musk's turbulent leadership at X is facing challenges on several fronts. The platform is contending with a marked drop in user engagement following the elections, while a separate legal confrontation is emerging.

Bernard Arnault, the luxury magnate behind LVMH, is taking legal action against X over alleged copyright violations involving his newspapers, Le Parisien and Les Echos.

As Europe's wealthiest individual, Arnault has accused X (formerly Twitter) of content theft, with the lawsuit jointly filed alongside his French newspapers. The case, co-plaintiffed by Le Figaro and Le Monde, asserts that X has breached new copyright regulations by using their content without obtaining the necessary permissions or providing due compensation.

Billionaire Battle: Arnault Sues X

X's refusal to negotiate with French news publishers, in contrast to Google and Meta, has led to a legal dispute that will be heard in a Paris court next May. This case will pit the world's wealthiest individuals, Arnault and Musk, against each other.

Arnault, the Chairman and CEO of LVMH, and Musk have frequently exchanged positions as the world's richest men in recent years. Arnault's net worth has decreased by $36 billion this year due to diminished demand for luxury goods from Chinese consumers.

Conversely, Musk's net worth has significantly increased, particularly after Donald Trump won the US presidential election. The billionaire, a prominent supporter of the Republican candidate, is anticipated to assume a senior position within the administration. His net worth has increased by $105.5 billion in 2023.

The legal action initiated by Arnault's newspapers is a direct consequence of a favorable court ruling issued in Paris in May. The Paris judicial court mandated that X provide commercial data to a group of French publishers, including Télérama, Courrier International, and Le Huffington Post, within a two-month timeframe.

Arnault And Musk Lock Horns In Court

The newspapers accused the controversy-plagued social media platform of failing to comply with the court's decision, underscoring its consistent pattern of evading legal responsibilities.

"The revenue from these rights, with the investment that it would enable its beneficiaries to make, is a boost to the plurality, independence and quality of the media, which are essential for freedom of expression and the right to information in our democratic society," the group said.

A European directive enacted in 2019 grants news organisations, including newspapers, magazines, and press agencies, the right to receive remuneration when digital platforms reuse their content.

Musk's X is expected to make every effort to fend off Arnault's lawsuit. In the meantime, a quieter rebellion is brewing as users are hitting 'log out' on X and not looking back.

X's Post-Election User Dip

Musk might have contributed to Trump's US presidential win, but now one of his companies is grappling with post-election losses. Although X achieved a record-high level of US web traffic, it also witnessed a substantial increase in user deactivations following the election, as reported by Similarweb.

The company has been tracking user deactivations on X since Musk's takeover. David Carr, an editor at Similarweb, told Quartz that Wednesday was "the biggest exit we've seen over the last couple of years." On November 6, over 115,000 US-based web visitors deactivated their X accounts.

The 'X'odus: Data Reveals The Biggest Exit Day Yet On X

Similarweb said this was "more than on any previous day of Elon Musk's tenure, during which many users who disagreed with his politics or style have threatened to leave the service." On the same day, X set a new US traffic record of 46.5 million visits, a 38 percent increase over the recent average.

Similarweb collected the data by monitoring visits to a confirmation page on X's website, which is displayed when a user confirms account deactivation. It's important to note that Similarweb does not track deactivations initiated through the mobile app.