AppLovin Faces SEC Probe Over Data-Collection Practices

AppLovin Corp. said Monday that it has been contacted by regulators as its shares fell sharply after reports that the Securities and Exchange Commission is investigating the mobile advertising company’s data collection practices. The probe, which sources described as overseen by the SEC’s cyber and emerging technologies unit, follows a whistleblower complaint and multiple short-seller reports alleging the company delivered more targeted advertising than its service agreements permitted. Shares fell as much as 19 percent intraday and closed down roughly 14 percent.

People familiar with the matter told reporters the investigation centers on whether AppLovin improperly collected or used device and platform identifiers to track users across apps and websites and whether that activity violated agreements with platform partners. Those reports described techniques sometimes called fingerprinting and alleged other practices that could enable retargeting of consumers. The SEC has not accused AppLovin of any violations.

The SEC’s public affairs office did not respond to requests for comment, with officials saying the agency was limited in its ability to comment during the federal...