TL;DR
Reuters reporting shows Meta took steps to make scam ads harder for regulators, investigators and journalists to find rather than only removing them. Internal documents suggest the tactic was adopted into a global playbook and linked to concerns about costly advertiser verification rules.
What happened
Reuters reviewed internal Meta documents and reported that the company did more than remove fraudulent advertisements: it implemented measures intended to reduce the visibility of scam ads to regulators, investigators and journalists. The reporting says the move was driven in part by concerns in Japan that regulators could require universal advertiser verification, a change Meta estimated would cost around $2 billion and might cut its revenue by nearly 5%. According to Reuters, the search-result ‘‘cleanup’’ was later added to a general global playbook and applied in multiple markets, including the United States, Europe, India, Australia, Brazil and Thailand. Earlier Reuters reporting cited internal projections that roughly 10% of Meta’s 2024 ad revenue was tied to ads connected to scams and banned goods; the company said that figure was overly broad. Reuters also reported the share was higher in China.
Why it matters
- Reduced discoverability can limit regulators’ and journalists’ ability to monitor fraud on large platforms.
- Efforts to avoid universal advertiser verification could affect how online ad ecosystems are regulated and audited.
- If a notable portion of ad revenue is tied to problematic ads, platform incentives may conflict with stronger enforcement.
- Applying a suppression tactic across markets creates a precedent for how tech companies respond to regulatory pressure.
Key facts
- Reuters reviewed internal Meta documents that described efforts to make scam ads less discoverable.
- Meta feared Japanese regulators would demand universal advertiser verification.
- Meta estimated universal verification could cost about $2 billion and reduce revenue by nearly 5%, per the documents.
- The visibility-reduction tactic was added to a global playbook and used in markets including the US, Europe, India, Australia, Brazil and Thailand.
- Earlier Reuters reporting cited an internal projection that about 10% of 2024 ad revenue came from ads tied to scams and banned goods.
- Meta later said that 10% estimate was overly broad, according to Reuters.
- Reuters reported the proportion tied to such ads was higher in China.
What to watch next
- not confirmed in the source
- not confirmed in the source
- not confirmed in the source
Quick glossary
- Scam ad: An advertisement that promotes fraudulent, misleading or illegal products or services.
- Advertiser verification: Procedures used by platforms or regulators to confirm the identity and legitimacy of businesses buying ads.
- Discoverability: How easily content can be found by users, journalists, investigators or automated searches on a platform.
- Playbook: A documented set of tactics or procedures an organization uses to respond to specific challenges.
Reader FAQ
Did Meta remove scam ads entirely?
The source indicates Meta removed some fraudulent ads but also took steps to make others harder to find, rather than only eliminating them.
Was universal advertiser verification implemented in Japan?
not confirmed in the source
How much revenue did Meta say could be affected by verification rules?
Internal documents cited by Reuters estimated universal advertiser verification might cost about $2 billion and reduce revenue by nearly 5%.
Is there confirmation of regulatory action in other markets?
not confirmed in the source
Rani Molla 23H Rather than fully cracking down on scam ads, Meta worked to make them harder to find In its latest piece on Meta’sMETA $658.99 (-0.91%) scam ads, Reuters…
Sources
- Meta made scam ads harder to find instead of removing them
- Meta created 'playbook' to fend off pressure to crack down …
- Former Meta integrity chief says new report reveals ' …
- Meta used a 'global playbook' to adjust ad transparency tools
Related posts
- Windows 11 Outperforms Linux on Lenovo ThinkPad P1 Gen 8 with Arrow Lake H
- How one simple Gmail trick helped me take back control of my inbox
- How Microsoft placated callers by routing them to ‘Bill Gates’s office’