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I’d love to hear one of Apple’s attorneys explain what the company’s damages would be if a developer were to breach this.

That aside, there’s a bigger problem here: this is bad business sense, no matter how you spin it.

It’s also bad for society.  In stark contrast to Apple’s approach, Google seems to be going in the opposite direction with their new “Android” platform.  The platform is wide-open, so anyone can develop almost anything for it without any limitations.  I think it’s obvious why that’s dangerous.  So, as of today the market has exactly two major choices: Apple’s closed system that’s hostile to developers, and Google’s open system that’s a malware attack just waiting to happen.

I don’t think this can last.