Launched earlier today, the Kongregate Arcade app for Android-based phones has been removed from the Android Market for reasons unknown. Joystiq received word from a GameStop and Kongregate representative that it had been pulled, along with the following statement:
As reported earlier today, the Kongregate Arcade app was launched on the Android Market and was enthusiastically received by the gaming community, receiving 4.5 out of 5 stars. Tens of thousands of users successfully downloaded the new app but, due to unknown reasons, Google has pulled it from the Market. Gamers wishing to experience Kongregate Arcade will be happy to learn it is now available for download at http://kongregate.com/android.Additionally, Kongregate has updated its Twitter feed with word that it is "working with Google to restore access in the Market." We've contacted Google for comment and will update as soon as we hear back.
Update: Google has informed Joystiq that the app was in violation of the Android Market Developer Distribution Agreement because the app itself was distributing other apps. However, there is nothing prohibiting Flash developers from making apps available on the market wrapped in an individual apk.