The violation was being able to buy books from the Kindle iPhone app without using IAP.
From what I can gather from that exchange, Apple originally approved the IAP exception for Kindle under the assumption that buying eBooks on iPhone would be a very rare use case. After that Apple launched the iPad and their own books app, making Kindle a much more direct competitor. So they made Amazon follow the standard rules, which led to them removing the ability to buy books from the Kindle app altogether.
From what I can gather from that exchange, Apple originally approved the IAP exception for Kindle under the assumption that buying eBooks on iPhone would be a very rare use case. After that Apple launched the iPad and their own books app, making Kindle a much more direct competitor. So they made Amazon follow the standard rules, which led to them removing the ability to buy books from the Kindle app altogether.