iPhone Apps Cannot Use Core Location Primarily for Ads

Apple has told developers that iPhone apps which use Core Location primarily to serve targeted ads will be rejected.

The Core Location framework allows you to build applications which know where your users are and can deliver information based on their location, such as local weather, nearby restaurants, ATMs, and other location-based information.

If you build your application with features based on a user's location, make sure these features provide beneficial information. 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.

This announcement doesn't seem to serve any purpose other than to hurt developers who are looking to earn some revenue off their free applications. Before an application uses your location you are prompted to allow it. Perhaps this is a first step in Apple's plans for their own mobile advertising platform.