[GenghisPhlip]

Earlier this week Apple told iPhone app developers that they will not be allowed to use the device’s GPS data to serve location-specific advertisements to users of App Store software.

The notification, sent through the “News and Announcements for iPhone Developers” RSS feed, included a tip on the “Core Location” framework included in the iPhone OS software development kit. Developers using the GPS in the iPhone 3G and iPhone 3GS can determine the location of users – but not for any and all purposes. The data can only be used to provide “beneficial information” to the device user.

According to the RSS update “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.”

In July of 2008 we reported that Apple was showing an interest in the mobile advertising firm AdMob. The company had been serving mobile ads for some iPhone apps when the firm was suddenly purchased by Apple rival Google. Apple later purchased mobile advertising firm Quattro Wireless, and has indicated it’s intention to allow developers to easily integrate the advertising solutions into software offered at the App Store.

The new policy on GPS data usage has led to some to speculate that Apple may be planning to retain location-aware advertising for its own use, giving the company a significant advantage over competitors like AdMob and Google. To date Apple has not formally rolled out any of its own integrated advertising solutions, so whether location-based targeted ads would be a part of the network remains unknown.

Apple has also shown interest in expanding location-based services on the iPhone. One patent application described a dynamic home screen that would display specific applications automatically populated based on factors like the current location of the phone. For example, when traveling in San Francisco, a specific “San Francisco” icon could appear on the screen, and give users easy access to local weather, time, maps and contacts.

In addition, this week a new patent application described a system for easily sharing a user’s current location with a contact in-call. Such a system would use the GPS data from an iPhone to allow two parties to efficiently meet one another.