Meta $META ( ▼ 0.88% ) didn’t just remove scam ads from its platforms. According to Reuters, it also worked behind the scenes to make those ads harder for regulators, journalists, and investigators to discover in the first place.
The internal goal wasn’t just moderation. It was containment.
Hide the evidence, not just the ads
Internal documents reviewed by Reuters show Meta feared that Japanese regulators could push for universal advertiser verification. Meta estimated that such a requirement could cost around $2 billion to implement and shave nearly 5% off revenue. Instead of embracing tougher oversight, the company adjusted its systems so scam ads were less searchable and less visible to outside scrutiny.
Reuters reports the strategy worked well enough that Meta folded it into a broader “global playbook” used in other markets facing regulatory pressure, including the US, Europe, India, Australia, Brazil, and Thailand.
Why the incentives matter
Earlier Reuters reporting found Meta internally projected that roughly 10% of its 2024 revenue could be tied to ads involving scams or banned goods, though the company later said that estimate was too broad. The same reporting suggested the rate was even higher in China.
That context helps explain why Meta’s response focused more on limiting exposure to regulators than eliminating the underlying activity altogether.
The takeaway: Meta didn’t just fight scams at the surface level. It also optimized its platforms to reduce the odds that anyone outside the company would notice how widespread the problem really was.