Otherwise, they would be violating the ToS and can be removed from that as well.
As far as I know, they sell to anyone which pays well and don't go public about using it.
I.e. I wouldn't be surprised if some questionable agencies focused around dodgy detective work or "discrediting" PR work. Heck I also wouldn't be surprised if he literally (but probably unknowingly) sold it to organized crime for which it quite valuable for tracking down witnesses which need to be pressured into keeping silent or some other bullshit usage.
I mean that is one of the major problems with the whole think: It's not a government/state controlled database only used by law enforcement. (Which still would be a problem but a bit less).
4.3 Spam
Don’t create multiple Bundle IDs of the same app. If your app has different versions for specific locations, sports teams, universities, etc., consider submitting a single app and provide the variations using in-app purchase.
From: https://developer.apple.com/app-store/review/guidelines/#spa...
Edit: Thanks for the helpful responses, everyone.
It seems like a lot of companies are apparently using the developer program as an end-run around App Store review.
In the case of a tool like this it seems like the obvious solution would be to use Android phones for police officers, etc. so they can use apps without needing to get Apple to review and approve them.