SEC launches investigation into AppLovin’s data collection practices

• AppLovin shares fell as much as 19%, marking their biggest intraday drop in six months.
• The company said it regularly engages with regulators and will disclose any material developments.
• The investigation follows a whistleblower complaint and short-seller reports, though no wrongdoing has been alleged.

The Securities and Exchange Commission (SEC) has launched an investigation into AppLovin’s data collection practices.

As reported by Bloomberg, the SEC is investigating claims that AppLovin allegedly breached platform partner agreements to deliver more targeted ads.

The agency’s cyber and emerging technologies unit oversaw the probe. AppLovin shares fell as much as 19%, their steepest intraday drop in six months.

“We regularly engage with regulators and if we get inquiries we address them in the ordinary course,” said Applovin. “Material developments, if any, would be disclosed through the appropriate public channels.”

The SEC’s probe follows a whistleblower complaint and recent short-seller reports, though no wrongdoing has been alleged against AppLovin. 

Strategic deals and growth

Earlier this month, AppLovin rebranded its consumer ads division as Axon, reflecting its AI-driven focus. The company also expanded into web and e-commerce, onboarding hundreds of advertisers. 

Over the past year, AppLovin sold its games business to Tripledot Studios for $400 million and an equity stake, joined the S&P 500, and made an offer to acquire TikTok’s international operations in a proposed strategic merger with TikTok Global.

Elsewhere, former AppLovin executives recently launched a new mobile studio called Cheer, which will focus on developing casual puzzle games.