Media: FTC has launched an investigation into AppLovin over its user data collection practices
The U.S. Federal Trade Commission (FTC) has decided to investigate the activities of AppLovin, Bloomberg sources report. It is claimed that the regulator took notice of the company after short sellers accused it of fraud.
Recall that the firms Culper Research and Fuzzy Panda Research criticized AppLovin back in February. At that time, they made numerous accusations, including allegations of stealing information from Meta* to enhance advertising tools, inflating figures, and even illegally tracking children's data. However, AppLovin denied everything and indicated that the short sellers sought to crash its stock price with loud statements—and they succeeded.
Bloomberg writes that the FTC is currently studying AppLovin’s "data collection methods." Specifically, the regulator aims to determine whether the company violated the privacy policies of platforms it collaborates with to display more personalized ads.
AppLovin and the FTC declined to comment on Bloomberg's information from sources.
Amid rumors of the investigation, AppLovin's shares have significantly dropped again. By the end of trading on October 6, they were priced at $573.6 per share, 16% lower than in the morning of the same day.
*Meta is recognized as an extremist organization in Russia, and its activities are prohibited in the country.