$200B Ad-Tech Giant Accused of Sneaky App Installs--Now the SEC Is Circling

AppLovin APP is under the spotlight after shutting down its controversial Array platform, a move that comes amid allegations the software may have triggered unwanted app downloads on Android devices. The Palo Alto-based ad-tech firm confirmed the closure, calling Array a test product that was not economically viable, and insisted that users never get downloads without explicitly requesting it. But the defense follows new scrutiny from Harvard's Ben Edelman, who published findings suggesting Array allowed silent or forced installations on phones sold by partners like T-Mobile and Samsungboth of which have since distanced themselves from the program.

Edelman, who disclosed a short position in the stock, said his research was backed by over 200 user complaints showing apps downloaded automatically or after failed attempts to dismiss ads. AppLovin dismissed the allegations as misleading and biased, arguing the claims were amplified by short-sellers seeking financial gain. The controversy surfaces just as the company's stock has soared more than 80% this year, propelling its valuation to roughly $200 billionfueled by investor enthusiasm for its AI-driven ad-targeting technology. Still, Bloomberg recently reported that the SEC is now investigating whether AppLovin misrepresented its data practices to investors, raising fresh questions about governance and transparency.

During its February earnings call, AppLovin's CFO cited early contributions from Array as part of the company's growth narrative, though all references to the product have since been scrubbed from filings and its website. Carriers and device makers, including T-Mobile and Samsung, said they no longer work with the firm and reaffirmed that no apps are installed without consent. As the SEC probe unfolds and short-sellers circle, investors are weighing whether AppLovin's breakneck rise in valuation can hold against a mounting storm over its ad-tech ecosystem.