Key Moments:
- Malaysia’s regulator reported that up to 10 percent of Meta’s 2024 revenue originated from ads tied to scams and illegal gambling.
- Authorities in Malaysia submitted over 157,000 requests for ad removals and nearly 45,000 takedown requests related specifically to gambling content between January and early November 2025.
- The regulator proposed a new public safety and harm rating system alongside mandatory transparency reports for online platforms.
Regulatory Scrutiny Intensifies
Malaysia’s communications regulator has escalated its investigation into Meta following reports that the company derived a significant portion of its 2024 advertising revenue from scam and illegal gambling promotions. According to documents, up to 10 percent of Meta’s estimated MYR 66.5 billion (US$16 billion) revenue for 2024 was linked to advertisements for scams, unauthorized gambling, and prohibited goods.
The Malaysian Communications and Multimedia Commission (MCMC) has announced that it is summoning Meta for a second meeting as part of its ongoing probe. Commissioner Derek Fernandez described the findings as concerning and emphasized the urgency of decisive regulatory action, calling the situation both serious and troubling given the public interest involved.
Revenue and Exposure from High-Risk Ads
Internal records obtained by Reuters indicated that Meta users were exposed to approximately 15 billion “high-risk” scam ads every day. The associated annual revenue from these ads was estimated to be around MYR 24.9 billion (US$7 billion). The categories fueling this revenue included deceptive e-commerce schemes, fraudulent investment offers, unlicensed online gambling, and banned medical product promotions.
While Meta disputes the 10.1 percent revenue assessment, arguing it is broad and overly inclusive, there is ongoing concern about the prevalence and impact of such content on its platforms.
Enforcement and Removal Requests
Between January and early November 2025, Malaysian authorities filed more than 157,000 requests to remove illegal online ads and nearly 45,000 targeted specifically at gambling-related content on Meta’s platforms, including Facebook and Instagram. These figures exceed similar requests made to competing services, such as TikTok, Telegram, X (formerly Twitter), and YouTube.
| Time Period | Total Removal Requests | Gambling-Related Takedowns |
|---|---|---|
| Jan – early Nov 2025 | 157,000+ | ~45,000 |
Calls for Accountability and Reform
Commissioner Fernandez criticized technology platforms for profiting from unlawful or fraudulent content while leaving public authorities to shoulder the burden of content policing. He advocated for tech companies to adopt stronger measures to block repeat offenders and curb criminal exploitation of social networks. He further cautioned that regulators might tighten oversight further if platforms do not make substantial improvements, mentioning possible new requirements such as licensing, statutory rights for victims, and legal accountability for platforms that knowingly facilitate such activity.
To advance transparency, Fernandez suggested the creation of a public safety and online-harm rating system, along with required transparency reporting, designed to inform users about how companies handle illicit and harmful content.
Meta’s Response and Policy Implications
Meta issued a warning that excessive regulation could impede innovation and fail to keep up with evolving cybercrime tactics. However, despite mounting tensions in recent months, the company expressed readiness to continue engaging with regulators.
Malaysia’s actions underscore the ongoing global discussion on how to craft regulations that protect users and ensure corporate accountability without stifling technological progress. The challenge remains for policymakers and platforms to find a balance that addresses the economic drivers behind scams and illegal gambling ads while safeguarding confidence in digital marketplaces.
- Author
Daniel Williams
