Meta fails to address claims of profiting from scam, gambling ads

PUTRAJAYA: Tech giant Meta must provide a full explanation on a report alleging that 10% of its revenue comes from advertising linked to illegal activities inclu­ding scams and online gambling, says Datuk Fahmi Fadzil (pic).

The Communications Minister said the report was concerning as Meta was alleged to have profited from advertisements promoting activities that are illegal under Malaysian law.

“If true, this is very worrying as it suggests that part of Meta’s profits comes from illegal activities, including those prohi­bited in Malaysia,” he said at a press confe­rence.

Fahmi, who is also the government spo­kes­­man, said Meta has yet to provide a satisfactory response to the report, apart from saying the figures cited were taken out of context.

“That is not sufficient. This information will be studied and form the basis for us to summon Meta to provide a full explanation,” he said, Bernama reported.

Reuters had reported that Meta, the parent company of Facebook, Instagram and Whats­App, projected that 10% of its total revenue in 2024 or about US$16bil (RM66.81bil) came from advertisements related to scams and banned products.

According to the report, several previously unreported internal documents showed that the social media giant had failed to identify and stop ads exposing billions of Facebook, Instagram and Whats­App users to fraudulent e-commerce and investment schemes, illegal online gambling and the sale of banned medical products.

The international news agency cited one document dated Dec­ember 2024 stating that the company had circulated about 15 billion “higher-risk” ads showing clear signs of fraud to users on its platforms.

Fahmi said the government was dissatisfied with Meta’s takedown process for risky content, which he described as too slow.

He said each request submitted by the Malaysian Communications and Multimedia Commission (MCMC) to remove high-risk content takes between 30 and 45 minutes to process.

Fahmi said once the Online Safety Act comes into force, social media platforms will be required to ensure that harmful online activities such as scams and gambling are no longer accessible in Malaysia.