In an update on its iPhone developer RSS feed, Apple has delivered a warning: “If your app uses location-based information primarily to enable mobile advertisers to deliver targeted ads based on a user’s location, your app will be returned to you by the App Store Review Team for modification before it can be posted to the App Store.”
Some wonder if Apple could be reserving the ad-targeting capability for its own use. Recently, industry watchers have seen signs that Apple intends to improve the location-based features of the phone.