Tech Giants in Crosshairs: Meta, Google Executives Miss ED Summons, Called Again in Online Betting Probe

Key highlights

 

Meta and Google executives have been served new summonses by the Enforcement Directorate (ED) after they skipped appearing as planned on July 21 for questioning in a prominent money laundering case. The investigation involves the advertising of unlawful online betting and gambling websites on leading digital platforms.

 

Reason for ED Action

 

The ED is investigating how illegal gambling and betting sites managed to purchase and run ads on Meta and Google's platforms, allegedly advertising extensive financial fraud, tax evasion, and money laundering worth crores of rupees.

 

Executives at the two companies had been requested to come with voluminous documentation regarding ad revenues, business deals, and content moderation algorithms associated with these betting sites.

 

The non-appearance was due to pleas by representatives of the company for additional time to gather the required information and documents. Both have now been summoned to depose on July 28, where their statements will be recorded formally under the Prevention of Money Laundering Act (PMLA).

 

Broader Ramifications and Continuing Investigation

 

The ED investigation covers several illicit betting apps and websites like Mahadev Online Book, and is also looking into the role of celebrities, sportspersons, and influencers who have allegedly promoted or endorsed such platforms.

 

Google said it is dedicated to strong advertising policies, stating that billions of ads and advertiser accounts have been recently suspended or terminated in India as part of initiatives to combat unsafe content, and providing complete cooperation with the ongoing investigations.

 

Meta has not commented officially so far. The result of the investigation could result in stricter digital advertisement rules and increased scrutiny on technology majors functioning in India. ED reaffirms its position that illegal online betting websites have cheated lakhs of citizens and lost tax revenues, and accountability must be sought from both digital intermediaries and celebrity promoters.

 

Sources: Economic Times, Mathrubhumi