That doesn't sound like cloaking. They really are deleting the ads. They're just concentrating on the ads that the regulators are most likely to see based on what they usually search for.
This seems to be the "smoking gun"... but it's unclear from the article what the source or context of the quotations are.
> but it's unclear from the article what the source or context of the quotations are.
Good point, this quote could just be painting their actions in the poorest possible light.
Later part makes it sounds like the ads were at least deleted from the Japanese / Taiwan results areas completely, and then just redistributed to other geographic areas.
"If an unverified advertiser is blocked from showing ads in Taiwan, for example, Meta will show those ads more frequently to users elsewhere, creating a whack-a-mole dynamic in which scam ads prohibited in one jurisdiction pop up in another."
Notably, from a different article about fake accounts, and how much they cost, Japan's regulation seems to be working (at least somewhat). [1] Fake Accounts for Facebook Available (US, 157,401, @$0.13/account; Japan, 16, @$3.00/account, Dec 31st, 2025 data)