According to Bloomberg, informed sources reveal that the mobile advertising technology company AppLovin is being investigated by the United States Securities and Exchange Commission (SEC) for alleged violations of the Platform ‘ s partner service agreement.
It was noted that the core of the survey was the data collection behaviour of the advertising technology giant. According to the source, the regulator is examining whether AppLovin is sending more targeted advertising to users in a direction that violates the Platform ‘ s privacy rules. According to the information received, there were complaints from whistleblowers earlier this year, but Bloomberg stressed that the SEC investigation “does not necessarily always lead to regulatory enforcement action and may impose a fine on the company or its managers if it is ultimately determined that a violation has occurred”. The report adds that “the regulator has not yet brought allegations of misconduct against AppLovin or his managers, and the extent of the investigation is not known”. As a result of this information, AppLovin ‘ s share price fell from approximately $667 to under $552 and, although the collections recovered to $587, it fell to 12 per cent a day. The transaction price fell further to $554 as of the time of issue, resulting in a cumulative decline of about 17 per cent.
This was not the first time that Applovin had been charged with irregularities. In February this year, the company responded strongly to two reports issued by the space agency Culper Research and Fuzzy Panda, alleging “systematic abuse of authority”, advertising fraud, data theft from Meta and the use of user data in a way that violated Apple and Google platform policies. Adam Foroughi, Chief Executive Officer of AppLovin, denounced the “bad” behaviour of the empty institutions in an official blog, the “misleading” of the allegations, and pointed out that the report was “filled with false statements and false assertions”. In order to stabilize market confidence, AppLovin published two consecutive blog posts in April to refute the allegations and announced that he had engaged a law firm to conduct an investigation into the conduct of an empty body.
During the year of the boom, AppLovin also sold all the game studios under the flag to Trippedot for $800 million. The British enterprise paid $400 million in cash and gave 20 per cent of its business equity to offset the balance. In addition, Applovin was involved earlier this year in a bid to buy the United States business of TikTok ‘ s divestment, but eventually lost to the American consortium, led by Co-Founder Oracle Larry Allison.
