Meta Fights Bank's Demand for Ad Pre-Approval in Israel

Meta is urging an Israeli court to dismiss a lawsuit by Bank Leumi, which seeks to force the tech giant to pre-approve all advertisements featuring its name or trademarks. Meta argues that granting a private financial corporation "veto power and censorship authority" over the internet would set a dangerous precedent.

Bank Leumi filed a NIS 26 million lawsuit in August, alleging Meta facilitates the widespread distribution of fraudulent advertising campaigns that defraud the public, profiting from these ads while ignoring the damage. Meta counters that it has acted appropriately, removing the specific ads mentioned in the bank's request on the day it was served. The company also states that accepting payment for ads or hosting them does not constitute endorsement or partnership in wrongdoing.

Meta highlights the practical challenges of the bank's demand, processing hundreds of millions of ads monthly from over 10 million active advertisers. It claims a manual pre-approval system involving a third party is technologically and operationally infeasible and would disrupt its automated advertising system. Meta points out that even the bank's own cybersecurity experts have acknowledged the complexity of combating sophisticated attackers who evade detection systems.

Furthermore, Meta contends that the bank's demand for pre-approval of all related advertisements grants a private commercial entity unprecedented veto and censorship power over third-party expressions. This mechanism, Meta warns, could lead to the blocking of legitimate content like consumer reports, financial journalism, comparative advertising, public warnings, or even objective criticism of the bank, resulting in over-blocking out of fear of lawsuits.

Meta presented evidence of its anti-fraud measures, including AI-powered automated classifiers and real-time response mechanisms. Since late June 2026, Meta has implemented a mandatory identity verification process for advertisers targeting Israel with financial services and investment ads. The company also noted the global removal of 692 million fake accounts in Q3 2025, with 99.9% proactively identified, but did not provide similar data for Israel.

The court will need to determine the line between a passive content intermediary and a platform profiting from fraudulent ads, whether pre-screening infringes on free speech or is a basic duty of care, and if Israeli law is adapted to AI-driven fraud. Questions arise regarding Meta's differing protection standards between the US and Israel, and the apparent contradiction between its claim of infeasible pre-screening and its ability to remove millions of accounts globally.