Apple has come under fire from rival Google for allegedly imposing new rules on developers that could bar the Internet giant from selling ads inside iPhone and iPad applications now that it has completed the acquisition of AdMob. Earlier this week Apple amended the rules governing the development of applications, such as games, that work with its new operating system (iOS 4) for its iPhone and iPad devices. The language now prohibits some ad companies from collecting usage data from iPhone apps, making it harder to target ads and compete with Apple’s own ad network – iAd – which is due to launch July 1. In a blog posting, AdMob’s founder and now a Google VP, Omar Hamoui, stated: “This change threatens to decrease – or even eliminate – revenue that helps to support tens of thousands of developers. The terms hurt both large and small developers by severely limiting their choice of how best to make money. And because advertising funds a huge number of free and low cost apps, these terms are bad for consumers as well. Let’s be clear. This change is not in the best interests of users or developers. In the history of technology and innovation, it’s clear that competition delivers the best outcome. Artificial barriers to competition hurt users and developers and, in the long run, stall technological progress.”

Interestingly, Apple tried to buy AdMob before being beaten to the US$750 million deal by Google last year. That was the latest bit of bad blood between Google and Apple, one-time allies whose relationship has deteriorated as they have increasingly clashed in the mobile device market.