Apple’s rejection of the Podcaster app from the iPhone App Store has been widely blogged. Apple rejected the functionality because it “duplicated” functionality in iTunes.
This is just the tip of the iceberg for a bunch of messy policy decisions facing Apple. Let’s say a third-party $9.99 WidgetExpress app is making $50k day, with 30% to Apple. What happens when a developer submits a $0.99 (or free) competitor?
Will Apple start to reject apps that threaten an existing app’s revenue stream?