VLC and GPL and LC on iOS (was: Re: MergEXT now included with Indy/Business IDE)

[James Hale]

In the referenced thread Monte mentioned something about fmpeg and it associated libraries and licensing.
Today I was notified of an update the VLC and remembered how that is now available on the App Store.
Looking at Videolan's site, VLC is GPL 2.
How is it that it can be distributed under Apple's terms and conditions and still be adhering to its GPL terms and conditions?
Leaving the fact that there is a conflict here the more interesting question to me is why didn't Apple stop it. I know they did pull it when it first came out for iOS and then a second time but it has been back for a while now. I haven't been able to find anything on the Videolan's site to suggest their license has changed so what gives?
Is their wiggle room here for LC community apps to get up on the App Store?

James