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I can see Microsoft's logic here. It's Microsoft's shop and ultimately they're responsible for the content on it. They've got to make sure that none of the apps on their store are doing anything naughty. It doesn't matter if it's a new app or an update - someone at Microsoft will have to test it.
However, it'll certainly be detrimental to third party developers and consumers. I can see developers simply withholding updates. Apps that were once updated six times a year might only be updated once a year.
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