Investing.com — Applovin (NASDAQ:APP) shares fell 18% Monday afternoon following a Bloomberg report that the mobile advertising technology company is under investigation by the Securities and Exchange Commission regarding its data-collection practices.
According to the report, which cited people familiar with the matter, the SEC has been examining allegations that Applovin violated platform partners’ service agreements to deliver more targeted advertising to consumers. The investigation is reportedly being handled by SEC enforcement officials assigned to cyber and emerging technologies.
The probe specifically focuses on whether the company improperly collected or used data in ways that contradicted agreements with its partners, potentially raising regulatory compliance concerns in an increasingly scrutinized digital advertising landscape.
The significant stock drop highlights investor concerns about potential regulatory challenges facing the mobile advertising technology provider, which has become a major player in the app monetization and marketing space.
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