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I don't see anything that says commercial applications are not allowed but I also don't see anything that says they are allowed.

Can anyone find anything definitive?

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up vote 5 down vote accepted

The full Guidelines are here: http://code.google.com/appengine/program_policies.html

From what I read you can use the App Engine for commercial purposes. From what I read Google lets you use it for free to get a taste for what it can do. There specific usage limit is

An application on a free account can use up to 500MB of storage and up to 5 million page views a month

found in http://code.google.com/appengine/docs/whatisgoogleappengine.html.

So basically it is free for any use deemed as legal within their policies (no spam, porn, etc) up to the limit. Once you go beyond that you will have to pay for your usage.

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