Threads vs Twitter: Legal Threats, Data Concerns and the Battle for Social Media Dominance

Twitter Under Elon Musk

Twitter, founded in 2006 by Jack Dorsey, held a market capitalisation of USD$28.93 billion in 2022. In October 2022, Elon Musk purchased the platform for USD$44 billion and appointed himself Chief Executive Officer. The acquisition triggered widespread dissatisfaction among users and advertisers. Twitter subsequently lost nearly half of its advertising revenue and entered a period of negative cash flow.

In November 2022, Musk informed employees that they must commit to “working long hours at high intensity” or leave the company. Those unwilling to accept the new conditions were offered three months’ severance pay. The announcement sparked criticism, particularly given the growing emphasis on work‑life balance and mental health.

At the start of 2022, Twitter reported 237.8 million users generating capital on the platform. Despite this, Twitter’s user base remains significantly smaller than Facebook, WhatsApp and YouTube. Combined with concerns about harmful content, misinformation and allegations of harassment, Twitter’s vulnerability to competitors has increased.

The Rise of Threads

Threads, launched by Meta Platforms in July 2023, integrates with Instagram and lets users share information, create micro‑blogs, and follow news updates. Users can verify their Threads account through Instagram at no cost, contrasting with Twitter’s USD$8 monthly subscription. Threads gained approximately 30 million sign‑ups within its first 24 hours.

Twitter reacted strongly. Its legal team suggested that Meta misappropriated trade secrets and infringed intellectual property. In a letter to Meta’s CEO, Twitter’s lawyer Alex Spiro said Twitter “intends to enforce its intellectual property rights strictly”. He demanded that Meta stop using any Twitter trade secrets or confidential information. Mark Zuckerberg described Threads as a platform capable of reaching more than 1 billion users and criticised Twitter for failing to capitalise on the same opportunity.

Users comparing the platforms noted that Threads offered a smoother and more predictable experience than Twitter, which has become increasingly unstable since Musk’s takeover. The similarity between the platforms explains Twitter’s frustration and its consideration of legal action.

Potential Legal Proceedings

Twitter’s legal team may pursue claims for misappropriation of trade secrets, intellectual property infringement, and misuse of confidential information. However, such claims require proof that a trade secret exists. Without evidence of a trade secret, EONA cannot establish infringement.

Mark Halligan notes that “EONA proofs” are required to confirm the existence of a trade secret: existence, ownership, notice and access. Misappropriation can be shown through unauthorised disclosure, use or acquisition.

Spiro alleges that Meta hired former Twitter employees who had access to Twitter’s confidential information. If true, this could violate both state and federal laws in the United States. Meta denies employing former Twitter staff and denies knowing Twitter’s trade secrets.

Twitter has a history of threatening legal action. In 2023, it accused Microsoft of abusing “its API through integration with some of its products.” Meta proceeded with Threads despite the risk of litigation. Musk responded, “competition is fine, cheating is not.” Without strong evidence, Twitter is unlikely to succeed in legal proceedings.

Data Protection Concerns

Threads raises significant data protection concerns. Meta already collects extensive data through Messenger, Instagram and Facebook, but Threads appears to offer weaker safeguards. The platform allows third parties to access user data without clear constraints. Once users share data with third‑party services, Meta no longer controls how it is used or stored. This exposes users to inconsistent or unclear privacy policies and increases the risk of misuse.

Given how quickly users share information online, uncertainty about data handling poses a serious risk.

Conclusion

Threads has rapidly gained popularity, placing Twitter under pressure as it struggles with declining revenue and user dissatisfaction. Although Twitter has threatened legal action, its history of similar threats and the difficulty of proving trade secret misappropriation make success unlikely. If Twitter cannot compete with its rival, the platform may face an uncertain future.