this post was submitted on 12 Jun 2023
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It's because the planned IPO. Allowing third party apps, that are better designed, show no ads and don't collect the same amount of telemetry data (seriously the official app spies constantly for user data), doesn't look good in the eyes of potential investors.
Also, the API feed doesn't push ads, so 3rd party ads don't have anything to show. Reddit should have redesigned their API so ads could get pushed out.