The app created for Windows Phone by Microsoft doesn't show adds and also allows download of videos, both of which are violation of terms of use of Youtube.
War between Google and Microsoft doesn't seem to end. In the latest move Google has asked Microsoft to remove Youtube application from Windows Phone 8 devices and app marketplace.
The reason for this demand is twofold one the app doesn't allow advertisements and also allows users to download videos from Youtube. And both of these is violation of Youtube's terms of use. No ads means no revenue for Google and also for the content creators and therefore it hits the Google's very source of revenue.
According to cease and desist letter sent to Microsoft by Google, which was published by The Verge, Google has asked Microsoft to "immediately withdraw this application from the Windows Phone Store and disable existing downloads of the application by Wednesday, May 22, 2013."
Meanwhile Microsoft spokesperson told "We'd be more than happy to include advertising but need Google to provide us access to the necessary APIs."
Hope that the issue is resolved in time and the WIndows Phone users do not suffer from this bickering between two companies. However if indeed Youtube app is pulled out of Windows Phone store, users can still access youtube.com through their phones browser.
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