Yup. Same with pdanet (tethering app), along with a plethora of other apps. See the sideloading wonder machine if you want an easy way around their restrictions.
If it is in the Android market all you have to do is either remove your sim card and access the market using wifi or just put the phone in airplane mode. The Android Central Sideloading Wonder Machine is used to install 3rd party apps that are not in the Android market.
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