Wired reports that the first malicious application for the Google Android Marketplace may have already appeared. There are reports that an application called MemoryUp results in erasing data on the phone and corrupting memory of the phone.
Doesnt work at all erased my phone numbers and froze my phone," allegedly wrote a user according to the Geek.com site.
The developer of the application, however, appears to be a long running developer and denies their app could be causing the problem:
The application's developers deny those claims. "We are very disturbed by these reports," says Robert Lee, chief technical associate for eMobiStudio. "Whatever damage is out there has not been done by our product."
Looking at the original report on Geek.com shows that the evidence that this was an intentionally malicious app to be quite flimsy (unverified app review comments only). The app has been pulled in the meanwhile as it gets sorted out.
Still, Google's unregulated Android marketplace makes them more vulnerable to these sort of concerns. In contrast, Apple tries to hold more control over their App Store and manually approves all applications that enter the App Store.