App doesn’t care if you use a Notes competitor or not. What they care about is Rescue Time is using persistent location when it doesn’t need it. Lest people forget, Apple makes money from the App Store and doesn’t directly make money from Screen Time. Considering this an Apple conspiracy is ridiculous. Otherwise, why allow Fantastical or Bear or any number of apps that compete with Apple’s own?
This case is because of the performance implications of persistent background location services, not because it competes with Apple. That logic makes no sense anyway since Apple makes money from this app! And, admittedly, similar apps haven’t been blocked, so clearly this isn’t a business “strategy” but one of technical implementation.