Federal officials have launched an investigation into how information collected from smartphone users is being shared with developers of popular applications used on Apple's iOS and Google's Android
platforms, according to a securities filing Monday by Pandora.
The online radio service revealed in an amended S-1 filing with the Securities & Exchange Commission that it received a subpoena from a federal grand
jury earlier this year:
"In early 2011, we were served with a subpoena to produce documents in connection with a federal grand jury, which we believe was convened to investigate the
information sharing processes of certain popular applications that run on the Apple and Android mobile platforms. While we were informed that we are not a specific target of the investigation, and we
believe that similar subpoenas were issued on an industry-wide basis to the publishers of numerous other smartphone applications, we will likely incur legal costs related to compliance with the
subpoena, management's attention could be diverted and there is no guarantee that we will avoid costly litigation," Pandora stated in the filing made in connection with its planned initial public
offering.
A Wall Street Journal story in December about how apps collect personal data about mobile
users highlighted how popular apps including Pandora transmitted information to ad networks including age, gender and location without users' awareness or consent. Spokespersons for Apple and
Google today declined to comment on the matter, according to a Bloomberg Business
Week report, and no other companies were immediately know to have received subpoenas in the investigation.