Categories: Business & Economy

Applovin Stock falls after the report of the dry probe on data practices

Investing.com – Applovin shares (NASDAQ: APP) fell 18% on Monday afternoon following a Bloomberg report according to which the mobile advertising technology company is investigated by the Securities and Exchange Commission concerning its data collection practices.

According to the report, which cited people familiar with the question, the SEC examined the allegations according to which Applovin violated the service agreements of platform partners to offer more targeted advertising to consumers. The survey would be dealt with by officials of the application of the laws of the SEC allocated to cyber and emerging technologies.

The probe focuses specifically on the question of whether the company has made it possible to collect or use data in order to contradict agreements with its partners, which has potentially increased regulatory compliance problems in an increasingly examined digital advertising landscape.

The significant drop in shares highlights investor concerns concerning the potential regulatory challenges faced by the supplier of mobile advertising technologies, which has become a major player in the monetization and marketing space of the application.