The developer of Stone Loops, a marble game that used to be available in the App Store, has a very discouraging tale to tell in his blog today. Obviously, this is only one side of the story, but it does seem very suspicious to me that MumboJumbo only made these hefty claims of improper and illegal activity to Apple and not in any other forum (like, say, legal proceedings) nor have they leveled the same complaint about the multitude of previously existing platform version of Stone Loops. If Code Minions had really stolen code (among the things alleged from MumboJumbo), it seems like they would be taking more serious action than just complaining to Apple, that is, unless they don't have sufficient evidence to meet the standard of proof anywhere else, but if that's the case, then Apple shouldn't have removed a competitor's application without being shown proof.
I'll refrain from judgment until I hear the other side of the story, but if things are as laid out in Maciej's blog, then Stone Loops should be restored to the App Store immediately. On top of that, Luxor should be pulled from the store just as immediately, as punishment for making unfounded allegations about a competitor. I'd even go so far as to consider pulling MumboJumbo's developer privileges if this is true, and it were my call to make. I have no tolerance for underhanded tactics, especially when resorted to by companies failing to compete on their merits (I'm looking at you, Nokia).
Again, we don't know the whole story now, because neither Luxor nor Apple has addressed Maciej's allegations yet, so let's not pull out the torches and pitch forks just yet. You might want to sharpen the pitch forks, though, just in case. Apple is unlikely to make a public statement about this; it's just not their style, but MumboJumbo, at very least, should respond.
Personally, I think Apple should impose a new policy. When someone makes an allegation of impropriety about a competitor, they should pull both apps until it's resolved. After resolution, the prevailing party's app goes back on the store, the other does not. This may seem harsh, but it would make people think twice about leveling accusations unless they have substantial proof to back up their claims. Of course, this only works if Apple also puts in a mechanism to expedite resolution of conflicts and they may just not want to get into that business. But, as sole gatekeeper of the sole way to sell iPhone applications, they should have expected conflicts of this nature to arise and should be willing to deal with them in a fair and expeditious manner.