Last night I heard about Twitter acquiring the Tweetie iPhone application.  Tweetie, often raved as the best Twitter iPhone app, will now be offered for free instead of $2.99.  On Twitter’s blog, the company justified its acquisition, “People are looking for an app from Twitter, and they’re not finding one.”  I think they are right, and I’m happy they will be giving away the app.

When I heard the news, I was not surprised that they had released a native application, but I was surprised they had acquired another company to do it.

After waking up this afternoon (hey, don’t judge; I was up working until 10am), I was linked to this story on CNET. As the story shows, some view Twitter’s move as an attack on third-party developers and have compared it to Apple’s move with iPhone OS 4.0 (a move I do have reservations about).

To me, Twitter’s actions are significantly different from Apple’s, and significantly better for users and developers.  As I see it, Twitter is simply re-entering the market that made Twitter what it is.  It is NOT moving to block any third-party development.  The developer community is understandably nervous about any acquisitions and freebies, but, in this case, I think the anxiety is misplaced.

I’m a firm believer in competition and transparency. Twitter seems to be, too.  They have certainly encouraged developers to create external solutions through their API (application programming interface).  The Twitter API is well documented and allows access from a variety of languages and platforms, unlike Apple’s approach, which rules out anything not written in Objective-C.

Services like Seesmic go beyond a simple read/post interface and offer an expanded service (ability to post to updates to 50+ services), serving more than a generic recreation of Twitter. In contrast, Tweetable offers a generic read/post service that integrates with the admin panel of my blog, making Twitter available in a unique location.  I’m all for that.

Ultimately, innovation and improvement are the two greatest assets in any business model. Twitter’s acquisition of Tweetie shows it understands this logic well.  I wouldn’t be surprised if Twitter follows up by buying more related services or expanding internally in similar directions.