Big news on the Apple developer and iAd platform front. Developers cannot plug into 3rd party app metrics providers. I was hearing this all Friday but now it looks real.

This will kill part of the mobile advertising ecosystem including handful of startups – Flurry, Mobclix, Motally just to name a few.

Apple restricting developers specifically around using third party reporting within apps. I was hearing this last night and now it’s being reported by Eric Kerr (who I have never met) that Apple is restricting the use of third party analytic services.

I guess it’s Darwinism. Apple again is the big market maker and the collateral damage is the startups hoping to get a product out there in mobile analytics. It doesn’t stop there Adobe is super pissed as their top Flash evangelist just flamed Apple publicly tell Apple to Go SCREW THEMSELVES. This is a huge deal – meaning these moves by Apple. You can’t just nuke the ecosystem like this. Well maybe if you’re Apple. Doesn’t feel right to me.

Big Impact: Flurry, Mobclix, Motally, etc are going to get crushed and most likely die. Memo to those companies start getting Plan B together or you’re toast.

Here is a clip from Eric’s report: (worth reading his entire blog post):

The updated iPhone Developer Agreement includes stringent clauses around the acceptable use of storing, transmitting, and processing user data. Here is the updated section 3.3.9 in its entirety. I have added emphasis to clauses I would like to highlight:

3.3.9 The following requirements apply to You and Your Application’s use, collection, processing, maintenance, uploading, syncing, storage, transmission, sharing and disclosure of User Data:

– All use of User Data collected or obtained through an Application must be limited to the same purpose as necessary to provide services or functionality for such Application. For example, the use of User Data collected on and used in a social networking Application could be used for the same purpose on the website version of that Application; however, the use of location-based User Data for enabling targeted advertising in an Application is prohibited unless targeted advertising is the purpose of such Application (e.g., a geo-location coupon application).

– You may only provide or disclose User Data to third parties as necessary for providing services or functionality for the Application that collected the User Data, and then only if You receive express user consent. For example, if Your Application would like to post a message from a user to a third party social networking site, then You may only share the message if the user has explicitly indicated an intention to share it by clicking or selecting a button or checking a box that clearly explains how the message will be shared.

– Notwithstanding anything else in this Agreement, Device Data may not be provided or disclosed to a third party without Apple’s prior written consent. Accordingly, the use of third party software in Your Application to collect and send Device Data to a third party for processing or analysis is expressly prohibited.

– You must provide information to users regarding Your use and/or Transmission of User Data and explain how Your Application will use User Data, e.g., by providing information in the App Store marketing text that accompanies Your Application on the App Store, by adding an About box within Your Application, or by adding a link to Your privacy policy on Your website.

– You and the Application must take appropriate steps to protect any User Data from unauthorized disclosure or access. If a user ceases to consent to Your use and/or Transmission of User Data, You must promptly cease all such use and/or Transmission and destroy any such information from Your records (except to the limited extent necessary for Your Application back- ups and record-keeping or as otherwise prohibited by law).

Here is Eric’s post – worth reading in it’s entirety.