Apple blocks music app Bloom.fm from running ads on iAd

British-based radio service Bloom.FM was blocked from Apple Inc. (NASDAQ:AAPL)’s iAds to promote its service. The radio service claims it was banned because it is a competitor to iTunes Radio.

Apple won’t advertise competition

The company’s marketing director Jon Clark explained to The Guardian, “They stopped us advertising a few weeks ago and we were unclear why. Then we received an email from our marketing agency saying that it was against their policy to advertise competing services. We’re amused by this rather than frustrated. It’s just pretty funny really. We’re a tiny app, so we’re surprised they even noticed what we were doing.”

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Bloom.FM initially launched service in the United Kingdom in early 2013. This service allows users to stream music for free and pay a small monthly fee for the songs they want to store in their own personal collection. Bloom.FM is also available for Android. iTunes Radio debuted last September, making it a relatively new player in the market, but the numbers don’t downplay the immense success of the service. iTunes Radio was first designed to compete directly with Pandora Media Inc (NYSE:P), and quickly rose to third place in most popular music streaming services in the United States.

Bloom.FM’s rise in usage numbers

The online music service reached over 500,000 users last November, subsequently acquiring 111,000 more users each month since. The users are pretty much split between iPhone and Android users; however, Clark has yet to divulge the number of active users or subscribers.

Despite the ban, Bloom.com does not feel the need to complain to advertising authority. Clark summed it up with the following, “I’m not sure. I don’t think it’s worth much of our time,” he said. Instead, Bloom.fm is putting its energies into finishing the website version of its service, which is currently in closed beta.

Internet radio is a big market thanks to mobile internet. iTunes Radio’s biggest competitors on the market include Pandora Media Inc (NYSE:P) and iHeartRadio.