"Eucalyptus doesn't contain any books; it's just an application that retrieves classic books from Project Gutenberg and presents them in a nice way on the iPhone." So why was it banned? At least one classic book is deemed "objectionable" by Apple. Again (and again and again): using mobile phpones to distribute media may be favoured because of the vendor's control over the platform - but we cannot let the vendor keep control over the platform, because there will be no end to cases like this.
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