This week Apple has made a significant change to its developer agreements and it is going to change the marketplace.

Apple’s success with iPhone and iPad have been complimented very well by the App Store in the iPhone. With its tight control over the App Store, Apple has made sure every single application goes through its ‘secret review’ process. As a part of these restrictions, Apple had also made the developers sign an agreement that they will not use certain third party tools such as Flash, as well as restricting third party applications in the iPhone or iPad applications.

This week, Apple has relaxed some of these restrictions – out of which two of those are highly significant.  They are listed below with details

Now third party application developers can make use of applications like Flash, which now enabled Flash developers to show applications developed in Flash on iPhone and iPad.

The above relaxation now gives an opportunity for thousands of Flash developers to now leverage the huge App Store marketplace where billions of dollars are available for grabs.

As soon as this news was announced, Adobe’s shares went up by more than 10% as investors realize that the value of Adobe’s Flash and related products will go up now.

The other significant relaxation by Apple is around the restrictions that were earlier in place for showing third party advertisements within applications. With this relaxation, now Google can justify its purchase of Mobile Advertising network, AdMob.

Apple has now come back very strong in response to the challenge posted by the steady growth of Android marketplace. This relaxation is good news for technology market as it enhances the quality of applications that come out for iPhone as well as for Android phones, due to the high level of competition between these two sets of developers.

Good job Apple.