updated 06:30 pm EDT, Thu October 15, 2009
Developers have called for policy change
Apple has changed its SDK policy to allow in-app purchases for free iPhone apps, according to Daring Fireball blogger John Gruber. The service previously was restricted to apps requiring payment for the initial download, although the limitations have been criticized by a variety of developers.
Many developers would prefer to release a single version of an app, while allowing users to add content or upgrade from within the app interface. The initial SDK terms effectively required developers to make a separate version of the app available for free. To access the additional content, customers had to purchase and download a second version from the App Store.
Apple's reasoning for preventing in-app purchases has not been clear, although the changes will be welcomed by many developers.