Apple seems to be taking things too far and stifling competition. The one way to look at this is that since this is Apple's app store any monetization generated via it (paid or advertising) should result in a payout for Apple also.
Jay Yarow, Cellular News, June 10, 2010
Apple just gutted the mobile ad market by adding strict limitations in the developers agreement it has for iPhone apps.
Yesterday, Peter Kafka at All Things D noted Apple will only allow "independent" mobile ad networks to collect data on users, and then use that data to target ads at users.
Apple defines independent mobile ad companies as companies whose primary business is mobile advertising. A mobile advertising company with its own mobile operating system is a no-go.
In other words, mobile ad company AdMob, recently acquired by Google, effectively can't advertise in iPhone applications. In a blog post on the topic, AdMob CEO Omar Hamoui confirms the new terms "would prohibit app developers from using AdMob and Google’s advertising solutions on the iPhone."
It's not just AdMob that gets screwed. It's app developers too, says Omar. AdMob advertising generates revenue for thousands of iPhone app developers.
Without AdMob, these developers have to rely on Apple's own iAds, or other independent advertisers, which makes this decision look so bad from Apple. It is pushing out any rivals, trying to monopolize its app market.
It also hurts independent mobile ad networks hoping to be acquired down the road. Millennial Media can target ads in iPhone apps today. If it were acquired by Microsoft tomorrow, then it could no longer target ads at users. Without the ability to target ads, it is worth considerably less to any potential acquirer.
We spoke with an Apple rep yesterday who told us that when iAds started running, AdMob ads would still be welcome in apps. When we asked about the section on collecting data and how that would affect AdMob, he said he'd get back to us.
We've called and emailed repeatedly, but haven't heard a thing.
Via Peter, here's the new section. We bolded the important part: