Viddy faced an abrupt about-face in policy from Apple after its video sharing app was pulled from the App Store, according to an investigation. The iPhone creator had it removed after “adult material” started becoming common in the service. A look by GigaOM (above) showed that a large number of videos were clearly being used that way.

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The developer was working with Apple to try and resolve the problem.

Viddy’s case is unusual as it’s primarily for user-uploaded material. The startup also had its own mechanisms to let viewers flag clips so that they might be taken down preemptively. With a disproportionate amount of racy content still in place, though, Apple may have seen its existing app rating system as not properly covering what was actually being posted.

The at least temporary ban came as a partial surprise given the number of celebrities using the service. Viddy also has relatively large investments, including a $6 million multi-party backing that includes Qualcomm.

[electronista]