Apple still allowing targeted third-party ads on iPhone

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 networks like Google's AdSense for Mobile and AdMob. 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." However, according to The Wall Street Journal, multiple software developers report Apple has recently green-lighted iPhone and iPod touch apps that seem to directly contradict the terms of the revised license agreement by 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). Elements of Design founder Nikolai Sander tells the Journal he believes Apple "is not enacting the restriction." On Thursday, Apple officially launched its own iAd mobile advertising network, introducing campaigns from Nissan Motor Co. (promoting its Leaf electric car) and Unilever PLC (touting its Dove Men's products). iAd presales topped $60 million, with app developers earning 60 percent of revenues.

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.

For more on Apple's mobile app approvals:
- read this Wall Street Journal article

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