Apple has rejected an application called Podcaster from being submitted to their App Store on the grounds that it "..assists in the distribution of podcasts, it duplicates the functionality of the Podcast section of iTunes."

The decision was clearly taken to block competition, as Podcaster is superior to the desktop iTunes podcast system, in that it allows you to download podcasts directly to the iPhone without synching to your computer, a feature which iTunes does not have. Not only that, but it would set a precedent: were a third party software allowed on the app-store able to download music directly to the iPhone, there’s nothing to say that competitors like say, Amazon, couldn’t add their own music stores to the App stores, therefore directly competing with iTunes.

Developers however, have all reasons to be less-than-thrilled about Apple’s policy. Developing software takes time and energy that could be spent developing something else for another medium. If devs don’t have any assurance that Apple won’t arbitrarily reject their application in the final step (submission to the app store), then they will have no motivation to invest their time and resources coding for the App Store.

Apple needs to lay down a precise set of rules regarding what software is allowed and what is not, thus avoiding unpleasant surprises for both parties and ensuring everyone gets along. Or at the very least enabling a developer to know what he’s getting into before bothering to build the app. Until that happens, reactions like that posted on developer Fraser Speirs’ own blog speak for themselves: “I will never write another iPhone application for the App Store as currently constituted.” Fraser has also proposed a series of changes for the app store approval policy which you can read here.