Apple's response to the FCC inquiry can be found on Apple's web site. Apple isn't the only responder, and discussion over various companies' statements (and silence) in connection with the flying inquiries is worth reading.
In short, Apple says it never rejected Google's app ... it just didn't approve it yet because it was still mulling issues related to the application's unknown internal behavior, iPhone UI disruption (e.g., evading visual voicemail and Apple's SMS app and channeling calls from Apple's phone app), and so forth.
The interesting thing is that Apple takes all the credit/blame for the non-approval.
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