Google is not happy with the idea that the full-fledged YouTube app continue to be used by owners of Windows Phone 8 devices. And so it asked Microsoft to remove the app or deny its installation to its latest Windows Phone OS.
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It contented that that the video playing app didn’t follow the normal approval procedures and the app apparently refused to show the regular ads. On top of it, YouTube users can stream contents and download videos that are denied to other devices despite the fact that they are not in accord with its (YouTube) Terms of Service. For one, the ad removal will completely block the revenue stream to the phone manufacturer and owner of third party apps, and this is the major issue that’s been troubling Google for the time being as the rest are just side-issues.
To show its determination to push through with the plan, Google is giving Redmond until May 22 to comply with the request in a move to let the world know that YouTube is under its control, being a subsidiary company since 2006. Microsoft responded with optimism that it can resolve the issue by taking appropriate steps to collaborate with Google regarding the ads and other concerns.
The updated YouTube version seems to caught Google by surprise after more than a week of joining Windows Phone resulting in a cease and desist letter being sent to Microsoft. Google’s previous refusal to deny YouTube metadata to Windows Phone has caused Microsoft to file a complaint with the EU and this time it has gone too far as to threaten Microsoft with infringing property rights after featuring the updated video playing app without its consent.
Although the response from Microsoft seems to imply that it is complying with the request of returning the ads back, the latest quarrel indicates a continuing strained relation between the two giants over property rights or issues connected therewith. Until Microsoft shows sincerity in complying with Google’s demands, it will be forced to remove the YouTube app and Windows Phone users will have to settle with third-party apps or a mobile web version, also from Google.
(source)

