The two trademarks Facetime Corp held (and which Apple has supposedly bought) orient around "computer software used for communicating over global computer networks using voice, text, fax, or e-mail."
A timer app called Facetime doesn't on the face of it appear to violate either of these other Facetime trademarks but.. trademarks are a wishy-washy world of legal wrangling, so it seems Apple's prepared to just push their weight around since they own the store and have the right to do so.
Kosher, yep I guess. A little forceful; yes definitely.
It's not something most people would make a habit of doing.
Apple has enforced the (unregistered) trademark of a fellow indie game developer the same way. Documentation was provided, the other party changed the name of their app, and everyone continued on their way without tears or lawyers. All quite civil if you ask me.
I don't know the exact story here - I'm just reacting to a claim that Apple informally deciding everything is inherently fair.