Err, yes they have:

"We're not quite sure why Apple took down the application yet, we've received no communication from Apple thus far. NetShare did not violate any of the Developer or AppStore agreements. We're hoping we'll get some feedback from Apple tomorrow. Sorry to all the folks that couldn't get it in time. We'll do our best to try to get the application back onto the AppStore if at all possible. At the very least, I would hope Apple will allow it in countries where the provider does permit tethering."

Taken from the macrumors forums (seems to be down).

Either (1) AT&T's agreement with the customer (you and me) says that the customer won't use "tethering", and so therefore Apple doesn't want to be in the position where customers can sue Apple once AT&T starts charging customers extra for the tether, under the principle of "Apple was allowing the user to use a tether, but didn't warn the user of the extra fees added to the monthly charge by APple's partner, AT&T".

Or, (2), the unpublished agreement between Apple and AT&T prohibits this form of "tethering", and therefore Apple had to withdraw the software, or be in legal jeopardy with its partner. A penalty for losing such a suit could potentially be the inability for Apple to sell any iPhones in the US.

Does all this suck? Yes, for both customers and Apple.

Then again, AT&T is in the position where is is obligated to make as much money as it can, and so it cannot support "free tethering" without either (1) screwing with the industry pricing norms, or (2) potentially finding itself with a shareholder lawsuit for not maximizing profits.

Regardless, Verizon charges $15 more on top of their $80/month 450-minute "voice/data" plan for 5 GB/month tethering, for a total of $95/month. If we could get that thru the iPhone for $70/month, that'd be totally awesome.

I don't understand folks saying this doesn't violate the AT&T agreement. I don't understand the confusion about why it was pulled.
AT&T doesn't allow tethering. I don't care how you try to rationalize this not being tethering, it is tethering. It allows your PC to use the iPhone's data connection.

AT&T wants to charge more money for that. Yes that sucks, but thats the agreement we have. Its fine to complain about the agreement, but to make believe we don't know the reason is silly.

But why pull this app FROM EVERY COUNTRY? Life actually does exist beyond AT&T you know! Down here in New Zealand we have data caps on our iPhone plans, and as far as I can tell, there is no legal restriction on tethering. I pay for 250Mb per month of data ... whether I use it or not. I should be able to use this as I feel fit! If there is a tethering option available, then I should be entitled to use it!

I'm sure selling this app would prompt some negative response from AT&T, but in addition to that, it's in Apples best interest not to allow 3rd party tethering. If they wanted to allow tethering, it would be trivial for them to do it the right way (via Bluetooth DUN). Without tethering available, it forces people to use the iPhone for applications they would otherwise turn to a PC for - full size web browsing, remote desktop, terminal, etc... by not allowing for that, Apple is further creating a demand for iPhone Apps to develop novel ways of dealing with the limitations. More iPhone apps, mean more customers.

Rob

News reports say it's now back again in the App store.

Yep...just bought it.

Any word on whether this tool works with iphones used in Germany? ...or at all? Any1 got it working right now?

RATS!!!

Just tried to buy this REALLY useful app.

Looks like Apple took it down again !!!!

Is there any possible way, for someone that owns this, to get a copy to me $ so I can install it on my 3G?

Shortly after readig this post I went on my itunes and checked to see if it was there. And it was so I downloaded it on my iPhone 3G! I checked back later aug 1 around 9 PM and it was gone! I got lucky! It works like a charm! I love this app. I almost jail broke my iPhone, but now I dont have to! :]

I'm allowed to tether with my $30.00 6 GB data plan on Rogers HSPA/EDGE network. Problem is Apple appears to not want anyone to have this app which makes no sense since it doesn't harm the iPhone EDGE or iPhone 3G models. Apple can if they wanted to filter apps in the App Store based on country so they don't upset AT&T for their American customers who aren't allowed to tether on the iPhone. Apple is not just upsetting their developers but also their customers by censoring apps without any notification to either developer or their customers as to the reason why it was pulled. The NetShare app was available when I was at work but I was to busy to download it though I thought I would be able to download it after work. I was wrong in that assumption since Apple's goons monitoring the App Store pulled the app again. Actions such as this are contradictory to fair business practice and will leave customers with more reason to not buy from the App Store and instead hack their iPhones to use installerapp 4 when released.