The stated reason for the removal demand was ‘copyright infringement,’ which Apple takes ‘very seriously‘. And the message from Apple to Digital Music News was pretty clear: that was cute, but please don’t make us bury you.
The iTunes Radio contract, leaked and published by Digital Music News in late June of this year, was specifically for independent, non-major labels that did not strike directly-negotiated, higher-rate deals with Apple. Perhaps more importantly, the contracts forced sub-standard terms onto all indies, except for biggest, most influential labels (from what we’ve heard).
The contract also conditioned iTunes Radio inclusion on iTunes Store placement, with no opportunity to negotiate separate agreements. The contract was met with little-to-no resistance from the indie label community, specifically indie consortium Merlin.