Meta Platforms created a 'playbook' to resist regulatory pressure requiring the verification of all advertisers, according to internal documents reviewed by Reuters. This resistance stemmed from fears that verification, while reducing fraudulent ads, would cost the company revenue.
The strategy was deployed as officials in Japan raised concerns over rampant scam ads on Facebook and Instagram. These included fake celebrity endorsements created using AI.
Fearing Japan would mandate identity verification, Meta initiated an enforcement blitz. This action aimed to lower the volume of fraudulent ads and simultaneously make them less visible to Japanese regulators.
In contrast, Meta was forced to comply with stricter advertiser verification regulations in Taiwan. The company faced potential fines there that were calculated to exceed its total profits in the market.