AdMob says Apple not enforcing third-party ad restrictions

Despite updating the terms of its iPhone Developer Program License Agreement to effectively block third-party analytics firms from collecting iPhone application user or device data, Apple (NASDAQ:AAPL) is still approving new apps enabled to serve ads from rival networks, according to AdMob CEO Omar Hamoui. Section 3.3.9 of Apple's developer agreement now reads "You and Your Applications may not collect, use, or disclose to any third party, user or device data without prior user consent," adding that while developers can share data for advertising purposes, information may only be provided "to an independent advertising service provider whose primary business is serving mobile ads." Many onlookers believed Apple updated the license expressly to block AdMob, acquired by Google for $750 million--however, Hamoui said Tuesday that for now, all remains business as usual.

"They haven't been enforcing [the new regulations] yet," Hamoui said during an appearance at the MobileBeat conference in San Francisco. "We're very appreciative of that," he added, explaining that if and when Apple does lower the boom, "it would mean we could not run ads on the iPhone at all" because advertisers are unlikely to purchase mobile ads without corresponding data on consumer actions and behaviors.

Hamoui's comments echo earlier statements from multiple software developers who report Apple recently green-lighted iPhone and iPod touch apps incorporating ads from Google-owned networks. Approved titles include Glu Mobile's Super KO Boxing II (which integrates AdMob ad placing) and Elements of Design's Spawn Glow (which integrates AdSense for Mobile). Earlier this month, Elements of Design founder Nikolai Sander told The Wall Street Journal he believes Apple "is not enacting the restriction."

It is unknown why Apple is not enforcing the terms of the developer license agreement, but conventional wisdom indicates the decision is related to a Federal Trade Commission investigation to determine whether iAd mobile advertising network unfairly restricts rivals from extending their own mobile marketing efforts across the iPhone platform. Citing sources familiar with the matter, Bloomberg reported in mid-June that discussions between the FTC and the U.S. Department of Justice ultimately determined that the former is the agency best equipped to spearhead the probe.

Apple launched its own iAd mobile advertising network on July 1, touting interactive, rich media ads that keep the user within an application instead of transporting them somewhere else. Hamoui applauded the iAd rollout, contending that Apple's entrance into the mobile ad segment forces larger brands to pay serious attention to the wireless platform. "The really rich, pretty ads they're doing are making advertisers and agencies think about what mobile means," Hamoui said. "Anybody getting advertisers interested in mobile is a good thing. It's not at all a zero-sum game."

For more on Hamoui's comments:
- read this CNet article

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