In 2025, Malaysia’s communications regulator has dramatically increased its oversight of Meta, the social media conglomerate, following allegations that the company earned significant advertising revenue from promotions linked to scams and illegal gambling. Reports indicate that as much as 10 percent of Meta’s 2024 revenue, estimated at MYR 66.5 billion (approximately US$16 billion), came from advertisements connected to these illicit activities.
The Malaysian Communications and Multimedia Commission (MCMC) has revealed plans to issue a summons for a second consultation with Meta as part of a comprehensive investigation into these claims. Commissioner Derek Fernandez has voiced his deep concern over these findings, stressing that immediate regulatory action is both necessary and timely. He described the scenario as severe and worrisome, emphasizing the urgent public interest in addressing this issue swiftly.
According to internal Meta documents, which were reportedly accessed by Reuters, users encountered approximately 15 billion “high-risk” scam advertisements every day. The annual revenue generated from these ads was around MYR 24.9 billion (US$7 billion), with the more hazardous ads contributing significantly to ad spending. The problematic categories include deceptive e-commerce schemes, fraudulent investment ventures, unauthorized online gambling, and banned medical products.
While Meta disputes these characterizations, labeling the 10.1 percent revenue figure as exaggerated and too broad, the prevalence of problematic advertisements remains a significant issue. From January to early November 2025, Malaysian authorities filed more than 157,000 requests for the removal of illegal online advertisements. Nearly 45,000 of these requests specifically targeted gambling-related content on Meta platforms like Facebook and Instagram. These figures surpass those directed at other platforms such as TikTok, Telegram, X (formerly known as Twitter), and YouTube.
Fernandez argued that technology companies reap substantial profits from content associated with illegal or fraudulent activities, while public agencies expend tremendous resources to police these platforms. He urged companies to implement robust safeguards to prevent repeat offenders and limit the criminal exploitation of social media networks. Without significant progress, Fernandez cautioned that Malaysian regulators might consider stricter measures, such as imposing licensing requirements for social media, providing statutory rights for victims to sue tech companies, and legal actions against platforms that knowingly allow wrongdoing.
To promote greater transparency and accountability, the commissioner proposed creating a “public safety and online-harm rating system” alongside mandatory transparency reporting. This initiative aims to help users better understand how companies handle harmful and illegal online content.
Meta, which operates Facebook, Instagram, and WhatsApp, warned that excessive regulation could stifle innovation and struggle to keep pace with the ever-evolving tactics of cybercriminals. Nevertheless, despite the growing tensions over the past few months, the company expressed its willingness to continue engaging with regulators.
This development in Malaysia underscores a broader international effort to balance digital content regulation with the need for innovation, user protection, and corporate responsibility. Authorities and platforms are confronting critical issues of how to diminish the economic incentives driving scams and illegal gambling advertisements while finding ways to protect consumers and foster trust within digital ecosystems.
However, some industry experts caution that overly stringent regulations could lead to unintended consequences. They argue that while it is essential to maintain consumer protection and ensure corporate accountability, an overly aggressive regulatory approach might inadvertently hamper technological innovation and economic growth. They suggest a collaborative approach between regulators and technology companies to develop solutions that are both effective and adaptable to the rapidly changing digital landscape.
As the global digital economy continues to expand, the challenge remains to strike the right balance between regulation and innovation. It is crucial for governments and companies to work together to create an environment that encourages responsible business practices while protecting consumers from harm. In this context, Malaysia’s actions could serve as a model for other countries grappling with similar issues, highlighting the importance of a cooperative and proactive approach in addressing the complex challenges posed by digital content regulation.
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