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Social Media Platform X Revises Creator Payout Strategies Amid Global Backlash

X announced changes to its creator monetization policy but paused the rollout after user criticism. An update would have adjusted how payouts are calculated based on audience location. The decision was reversed shortly after the announcement. The company said the policy will be reviewed.

New Payout Policy Rationale

X planned to shift payout calculations toward impressions from a creator’s home region. The previous model relied more on overall engagement, including international audiences. Head of Product Nikita Bier said the change aimed to reduce incentives to target larger markets such as the U.S. or Japan. The company expected the update to promote content relevant to local audiences.

Immediate Backlash And Policy Reversal

Users criticized the update, saying it would disadvantage creators publishing in global languages such as English. Concerns focused on reduced earnings potential in regions with lower platform activity. Elon Musk said the rollout would be paused following feedback. The company has not provided a timeline for a revised policy.

A Continuum Of Policy Adjustments

Update follows a series of recent policy changes by X. In November, the platform added profile labels indicating account location to address misinformation risks. Earlier this year, X introduced rules that suspend payouts for up to 90 days if users post misleading AI-generated content about conflicts without disclosure. Policy applies to monetized creators. The company continues to adjust moderation and monetization rules as it tests platform governance tools.

Meta’s $18 Billion Settlement Limits State Claims Over Children’s Data

Meta’s $18 billion settlement with attorneys general from 29 U.S. states includes a provision limiting future state claims over the company’s use of children’s data for age-assurance systems.

Under the agreement, Meta must develop, train and begin testing a system to identify users under 13 within a year of the settlement taking effect. The company already uses AI-based age-detection tools, although the agreement does not require the new system to use AI.

States Agree To Limits On Future Claims

The Children’s Online Privacy Protection Act (COPPA) generally restricts the collection and retention of personal data from children under 13. Under the settlement, the 29 state attorneys general agreed not to bring past, present or future claims under COPPA or similar state laws over the specified use of children’s data.

Meta will not be permitted to use information from users under 13 for advertising, marketing or algorithmic optimisation.

Federal Enforcement Remains Unclear

COPPA is primarily enforced by the Federal Trade Commission, which is not a party to the agreement. That leaves open the possibility of separate federal action over how Meta collects or uses children’s data.

Another issue is whether Meta can keep age-assurance data isolated from its other systems. An independent auditor will monitor compliance, but the settlement does not fully specify what data Meta can retain for training, how long it can be stored or whether derived insights can be used elsewhere.

Legal Risks Remain

Joshua Wurtzel, a partner at Schlam Stone & Dolan, said states could still pursue claims if Meta uses the data outside the settlement’s limits. Such cases could depend on how those limits are interpreted.

Peter Jackson, a data and intellectual property attorney at Greenberg Glusker, said the provision could “disincentivize future enforcement actions.”

The agreement gives Meta greater legal certainty around using children’s data for age assurance, but questions remain over federal enforcement, data retention and secondary use.

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