There has been a lot of discussion about the somewhat blatant omission of Flash from Apple’s newly introduced tablet, the iPad. Many of the technorati see the exclusion of Flash as Apple flexing its muscle as a kingmaker. They argue that Apple is using its influence to deprecate a technology it dislikes. While there has been some interesting talk around what this means for standards, web technologies and the future of Flash in particular, people may be missing the point. Apple’s decision to not include Flash on the iPhone OS platform (also used on the iPad) is likely a business decision and not an engineering one.

Those who support the decision argue that the inclusion of Flash would make the limitations of the hardware more obvious; as a CPU hog, Flash would slow down the browsing experience of the iPhone and the iPad and drain battery life. But businesses (Apple included) make engineering trade-offs all the time. Flash’s issues in Safari hardly seem like deal breakers and would be worthwhile trade-off for the value that it brings to a media consumption platform.

I don’t think Apple decided to pick a public fight with Adobe—arguably its most valuable third-party developer—because supporting Flash was too technically challenging. Rather, it likely has to do with Apple’s relationship with the content industry. Flash is verboten on the iPhone OS for the same reason that saving MP3s is verboten. So Apple can placate content owners and maintain the viability of its iTunes business.

If Flash were enabled on the iPhone OS, how long would it take for someone to put a streaming, Flash-based player in front of a new music service? Apple is the leading retailer of music in the United States. Why should it enable competition in a business where it has no peers and on a platform it has no reason to cede?  It simply doesn’t make sense for Apple to undercut its iTunes business and jeopardize its special status among content owners. It’s even possible that Apple’s agreements with rights holders expressly forbid it.

If user experience were the sole consideration, I’m sure Apple would gladly provide a Flash-enabled browser. While Apple may have some valid engineering concerns, they strike me as a convenient cover. Disabling Flash helps Apple control content on the platform by forcing it through iTunes or other approved software. This has to be clear to a firm who’s CEO sits on the board at Disney.