Malaysia’s communications regulator is intensifying scrutiny of Meta after reports suggested that up to 10% of the company’s 2024 revenue could be linked to advertising for scams, illegal gambling, and other prohibited goods—a figure potentially reaching MYR66.5 billion ($16 billion), according to Reuters-cited documents.
The Malaysian Communications and Multimedia Commission (MCMC) confirmed it will hold a second meeting with Meta and launch a formal investigation. Commissioner Derek Fernandez described the revelations as “serious and disturbing” and stressed the issue requires urgent attention.
Allegations of High-Risk Ads
Internal Meta documents reportedly indicated that users might have seen up to 15 billion “high-risk” scam ads per day, generating around MYR24.9 billion ($7 billion) annually. Meta disputed the characterization, describing the 10.1% estimate as “rough and overly inclusive” and not reflective of its ad revenue sources.
Between January 1 and November 4, 2025, Malaysian authorities requested the removal of 157,208 illegal ads and 44,922 scam ads, most originating from Meta platforms such as Facebook and Instagram. By comparison, takedown requests for platforms like TikTok, Telegram, X (formerly Twitter), and YouTube were significantly lower.
Gambling-related content remains a major challenge. Data from MCMC shows 45,448 gambling ad removals on YouTube, 3,956 on TikTok, 269 on Telegram, and just 11 on X, highlighting Meta’s platforms as hosting disproportionately high volumes of illicit content.
Regulators Push for Greater Accountability
Fernandez criticized tech companies for profiting from illegal activity while governments spend public resources policing their platforms. He warned that Malaysia may consider tougher measures if conditions do not improve, including:
- Licensing social media platforms
- Granting victims the right to sue companies facilitating repeated criminal acts
- Pursuing legal action where evidence shows platforms knowingly enabled wrongdoing
He also proposed a “public safety and online-harm rating system” and mandatory transparency reporting to enhance accountability and inform users about how companies manage harmful or illegal content.
Meta, which operates Facebook, Instagram, and WhatsApp, opposed Malaysia’s licensing proposals, arguing that heavy-handed regulation could hinder innovation and fail to keep pace with cybercrime. Nevertheless, the company said it remains open to continued dialogue with the government amid ongoing tensions.
