Despite becoming the top grossing app in the App Store in less than 24 hours, $14.99 iPhone internet tethering app iTether has been pulled from sale. iTether allowed users to access their iPhone data plan on their PC or Mac via USB connection.

Apple removed the app from the App Store citing the app was causing excessive data use which had created a burden on wireless carriers. Tether issued the following statement:

Around 12PM EST, Apple called our head office to let us know they were going to go ahead and pull our app iTether from the App Store. They stated it was because the app itself burdens the carrier network, however they offered us no way to remedy the solution… We were very clear when listing the app what the primary function was and they even followed up with several questions and requested a video demo then they approved the application.

We strongly disagree that it burdens a carrier’s network, as from our own data history on more than 500,000 users we know the average user consumes less than 200 MBs of data per month on Tether. In comparison, one TV show streamed from Netflix, an approved Apple App, could easily be in the 300-400 MBs range. Sure, there are some users that will consume way more than the average however that’s the case with any of these types of products.

Our team is very disappointed in Apple’s decision; as we strongly believe we help carriers better monetize their data stream by pushing customers into new data tiers further increasing their bottom-line. It is very anti-competitive to not allow any Tethering application to enter into this space to innovate. Our team has created a lot of innovative solutions for the BlackBerry product, which we were hoping to port over to the iPhone like end-to-end encryption, compression, website filtering and port filtering.

According to Apple, users who purchase iTether before it was pulled will continue to be able to use the product.

Our team is evaluating all of our options… Stay tuned.

Apple have not officially given reason for the removal.

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