Dutch foundation sues US data giant AppLovin for massive data misuse

A Dutch foundation, The Privacy Collective, has initiated a significant class-action lawsuit against the American data giant AppLovin. This legal action targets the company's pervasive data collection practices, particularly its exploitation of data from Dutch users, including an estimated 1.5 million children, through popular free mobile apps and games. The foundation is demanding not only an immediate cessation of these activities but also substantial damages, at least 500 euros per affected individual.

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AppLovin is a giant in the background. The company has existed since 2011 and its current market value fluctuates around 160 billion dollars. Yet, brand awareness is low.

AppLovin, a Nasdaq-listed tech company with a market value around $160 billion, operates largely behind the scenes. While its name may not be widely recognized, its software is embedded in numerous popular applications globally, many of which are favored by minors. These apps, often free games like Block Blast and Stumble Guys, serve as conduits for AppLovin's data harvesting. The company then aggregates this information, enriches it with data from other sources using AI, and creates detailed user profiles.

The lawsuit highlights the alarming extent to which sensitive personal data, including health, religion, and sexuality, is allegedly processed without explicit user consent. These profiles are then used to auction online advertising space in real-time, targeting users, especially young ones, within the apps themselves. The Privacy Collective argues that this practice violates privacy rights, particularly for vulnerable minors who may not understand the implications of the data collection detailed in often-obscure user agreements.

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According to the writ of summons from The Privacy Collective, sensitive personal data about health, religion, and sexuality are also processed, without users having given their consent for this.

This case underscores the growing concern in the Netherlands and across Europe regarding the digital privacy of citizens in an era of big data and artificial intelligence. The Dutch legal system's embrace of class-action lawsuits provides a powerful tool for consumers to challenge large corporations. The Privacy Collective's action against AppLovin is a clear signal that the era of unchecked data exploitation is facing increasing legal and public scrutiny, with a particular focus on protecting the digital rights of children.

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For children, the foundation demands a higher compensation, because they are more vulnerable and should enjoy more privacy protection.