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Internal Docs Link Billions of Meta’s China Ad Revenue to Scams as Senators Push Investigations

Lawmakers urged U.S. regulators to investigate after disclosures showed China-sourced ads tied to fraud account for a significant share of Meta’s business.

Overview

  • Reuters-reviewed internal documents show Meta generated about $18 billion from Chinese advertisers in 2024, with roughly 19%—more than $3 billion—linked to scams, illegal gambling, pornography and other banned content.
  • A China-focused anti-fraud team briefly cut the share of problematic ads from about 19% to 9% in late 2024 before being paused and disbanded, after which the rate rebounded to roughly 16% by mid-2025.
  • Meta disputed the characterization of its actions and said it is removing or rejecting large volumes of ads, citing a more than 50% drop in user scam-ad reports over 15 months and millions of ad takedowns.
  • Sens. Josh Hawley and Richard Blumenthal asked the FTC and SEC to investigate Meta’s alleged facilitation of scam and banned-content ads and the company’s profit from them.
  • Internal practices cited in the documents include a 95% confidence threshold before banning suspected scammers and higher auction fees for risky advertisers, while a Meta-commissioned audit flagged inconsistent enforcement in China compared with rivals.