If a company has an iOS app that it wants to distribute to its customers, but it doesn't want that app to be submitted to the app store and subject to the App Store submission criteria, then can it use the Enterprise app development program to do that? - or is the enterprise program strictly for app development and distribution within a company?
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Yes, you could do that. The devices from the other company just need your distribution provisioning profiles. We did that in my previous company a lot. Not sure if it's officially legal though.
This is all spelled out pretty clearly in the information Apple provides about the enterprise program. For example, you can start with this page which says unambiguously:
There's much more detail in the enterprise program agreement.