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SEC Probes AppLovin's Data Practices
21 Feb
Summary
- SEC investigation into AppLovin's data collection is ongoing.
- AppLovin's stock value decreased following the probe announcement.
- The probe stems from a whistleblower and short-seller reports.
The Securities and Exchange Commission (SEC) has confirmed that an investigation involving AppLovin Corporation is currently active and ongoing. The regulator declined to specify the exact subject or scope of the probe, citing potential harm to the investigation if correspondence were released. Such release could allow involved parties to fabricate evidence or alter documents, the SEC stated.
This investigation was reportedly initiated following a whistleblower complaint and multiple short-seller reports in October. These reports raised questions about AppLovin's data-collection practices, specifically whether the company violated platform partners' agreements to enhance targeted advertising. AppLovin, based in Palo Alto, California, has previously stated it engages regularly with regulators.
News of the ongoing SEC probe caused AppLovin's stock to pare earlier gains on Friday, indicating market sensitivity to regulatory scrutiny. The company's AI-powered ad targeting technology has driven significant value, but it also faces investor skepticism and broader industry concerns about AI's disruptive potential in advertising. The company is reportedly preparing to build its own social network, a move that could intensify competition with major social media firms.
