Malaysia Probes Meta Over Scam and Gambling Ads

Malaysia’s communications watchdog is ramping up scrutiny of Meta following revelations that a significant portion of the company’s 2024 revenue may have come from scam and illicit gambling promotions. Documents indicate that approximately 10% of Meta’s total earnings, around MYR66.5 billion (US$16 billion), stemmed from advertisements linked to fraud, illegal betting and prohibited products.

The Malaysian Communications and Multimedia Commission (MCMC) confirmed a second summons will be issued to Meta as part of a formal investigation. Commissioner Derek Fernandez described the matter as serious, stressing the importance of timely regulatory action in the public interest.

Internal documents suggest that users were exposed to roughly 15 billion high-risk scam ads daily, with some generating MYR24.9 billion (US$7 billion) in annual ad revenue. These included deceptive e-commerce schemes, unlicensed gambling platforms, fraudulent investments and banned medical products.

While Meta contends that the 10% figure is overly broad, authorities emphasize the real threat posed by these ads. Between January and early November 2025, Malaysian regulators submitted over 157,000 removal requests for illegal online ads, including nearly 45,000 targeting gambling-related content on Meta platforms such as Facebook and Instagram. This volume surpassed takedown requests on rival platforms like TikTok, Telegram, X and YouTube.

Fernandez highlighted that technology companies profit from content linked to illegal activities while regulators expend substantial resources policing platforms. He called for stronger safeguards, warning that failure to act could lead to stricter regulations, including licensing requirements, statutory victim rights and legal accountability for companies enabling unlawful content.

To enhance transparency, Fernandez proposed a public safety and online-harm rating system alongside mandatory reporting on harmful content. Meta, operating Facebook, Instagram and WhatsApp, cautioned that overregulation could stifle innovation but stated it remains committed to discussions with authorities.

Malaysia’s investigation underscores the global challenge of balancing innovation with user protection and corporate responsibility, highlighting the need to curb economic incentives that drive scams and illegal gambling online.