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Malware is just a niche of adware anyways, all the ads are mostly vectors for malware to get into your computer.

Use adblcok, Use firefox, be free

I suspect the advertising space would be very different if they were strongly liable for scams/viruses being distributed through their networks.

But somehow everything these days "needs" to be monopoly-scale which means moderation/vetting must fall by the wayside.

How will websites survive if they can't serve malvertisements to users?

ideally by the natural selection of providing something valuable (to people who visit the site)