Malaysia summons Meta over report of profits from scam and gambling ads

Authorities launched investigation after a report alleges up to 10 per cent of Meta’s global revenue came from advertisements for illicit businesses.

Malaysia.- The government has announced an investigation into Meta following a Reuters report that claimed the company earned roughly 10 per cent of its 2024 global revenue (about US$16bn) from advertisements linked to prohibited activities including scams and illegal gambling.

Communications minister Fahmi Fadzil described the report as “deeply worrying,” and said the Malaysian Communications and Multimedia Commission (MCMC) would summon Meta to provide an explanation. “If true, this means Meta’s earnings include revenue from activities that are illegal in Malaysia,” Fahmi said during a press briefing.

According to Reuters, internal company documents suggest that Meta distributed up to 15 billion high-risk scam ads daily, generating billions in annual revenue. The report alleged that automated systems prioritised ad revenue over enforcement, applying stricter actions only when fraudulent activity was confirmed with 95 per cent certainty.

Meta has strongly denied the claims, calling the report “a selective view” of its efforts to combat fraud. A company spokesperson told the New Straits Times that Meta “aggressively fights fraud and scams,” noting a 58 per cent reduction in global scam reports and the removal of over 134 million fraudulent ads in 2025.

The MCMC says it submitted more than 157,000 takedown requests to Meta this year for ads promoting illegal activities, including nearly 45,000 related to online gambling and scams. That far exceeds the number of requests made to YouTube, TikTok, Telegram or X.

“MCMC has advised Meta to take more proactive steps to combat online fraud and gambling, as its current efforts remain insufficient,” the regulator said in a statement. It also warned that all digital platforms operating in Malaysia must hold a valid Application Service Provider (ASP) licence and demonstrate measures to prevent illegal activity.

Meta currently operates without such a licence, despite Malaysian law requiring one for platforms that have more than eight million users. Other major platforms, including TikTok, WeChat and Telegram, have obtained one.

Minister Fahmi estimated that authorities have dedicated the equivalent of 22.2 years of manpower this year to file takedown requests. “We should send Meta the bill for all the work we are doing on their behalf,” he remarked.

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See also: Malaysia police arrest 147 in raids against alleged gambling operation

Authorities launched investigation after a report alleges up to 10 per cent of Meta’s global revenue came from advertisements for illicit businesses. Malaysia.- The government has announced an investigation into…