He has two version of Templar Assault and Cyber Knights (paid and free) and three versions of Star Traders (paid, free, lite).

Many big-name games do this (you can choose between a paid version and a free, ad-supported version). Rovio released an Angry Birds Lite for a while when they were having performance issues on lower-end devices.

Assuming this behavior does break the rules (which is not a given), the rules are still enforced very inconsistently, with no recourse.