AdMob Boss Upset Over iAd Rules

Apple’s new iAd policy that puts strict limits on in-ad data collection has AdMob CEO Omar Hamoui hot under the collar. According to Mr. Hamoui, the restrictions in Apple’s in-app advertising system for iOS 4 apps blocks companies like his from working with developers coding for the iPhone, iPod touch and iPad.

In a statement to AllThingsD, Mr. Hamoui states that Apple’s policy limits choices for developers, and ultimately hampers their ability to make money.

“Let’s be clear. This change is not in the best interests of users or developers,” Mr. Hamoui said. “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.”

The new iAd policy most likely has a few people a Google upset, too, since the Internet search giant bought AdMob so it could target ads for mobile devices such as RIM’s Blackberry line, Windows Mobile devices, Android-based phones, and Apple’s own iPhone.

With the iPhone’s popularity, and the upcoming release of the iPhone 4 on June 24, Apple’s mobile market is something that AdMob doesn’t want to miss out on.

“The terms hurt both large and small developers by severely limiting their choice of how best to make money,” Mr. Hamoui said. “And because advertising funds a huge number of free and low cost apps, these terms are bad for consumers as well.”

Apple, however, seems to see things differently, which means Mr. Hamoui may have a hard time convincing Steve Jobs to change his mind and give AdMob more access to iOS 4-based app advertising.