Meta's India Risks Mount as Child Abuse Ads Draw Government Ire

India's government warned Meta on Saturday that it faces action within a week over child sexual abuse material appearing in paid ads on Instagram, adding to regulatory pressure in the company's biggest market by users.

The Ministry of Electronics and Information Technology issued a stern notice directing Instagram to immediately disable all advertisements and content promoting child abuse, state broadcaster DD News reported. The government asked Meta for a detailed explanation within seven days.

The warning followed an investigation by the BBC that found Instagram running paid ads promoting child sexual abuse material in India. Meta did not immediately respond to requests for comment.

Neil Shah, vice president of research at Counterpoint Research, called the notice a wake-up call for Meta to tighten compliance and control. The Indian government is keen to tighten the leash over these massive digital platforms, he said.

This is not the only regulatory front Meta faces in India. Last week, the government warned the company over its messaging app WhatsApp's username feature, saying it could increase cybercrime. WhatsApp has over half a billion users in India. Meta defended the feature as a privacy tool that lets users connect without sharing phone numbers.

Earlier this year, the European Commission found Meta likely violated EU law by failing to prevent children under 13 from accessing its platforms. If confirmed, Meta could face fines of up to 6% of global annual turnover. Meta has disagreed with the preliminary findings.

The latest notice carries no immediate financial penalty. India's 480 million Instagram users and 400 million Facebook users make it Meta's largest market by audience. The government's active stance on online safety and data governance signals that regulatory engagement will intensify, said Reema Bhattacharya, head of Asia research at Verisk Maplecroft.

Meta shares fell 4.9% to $582.90 on Monday; the regulatory news added to earlier concerns. The stock carries an Alpha Score of 65 out of 100, a moderate reading on our proprietary scale. Investors can track Meta's regulatory developments on its stock page and find broader stock market analysis.