The new YouTube app did not have the facility to display ads which meant Google and third-party content creators were losing out on business opportunities.

Recently, Microsoft updated the YouTube app for Windows Phone in order to provide a better experience to its customers. This new update was supposed to support sign-in, downloads, and a full YouTube experience. However, Microsoft seems to also have upset Google with this new update.

After rolling out the updated YouTube app for Windows Phone, Google was not happy with the way the app was built and spotted that the app did not have support for ads. So the new YouTube app did not have the facility to display ads which meant that Google and third-party content creators whose revenue depend on ads were losing out on business opportunities.

In order to raise a voice against this, Google sent a cease and desist letter to Microsoft demanding Microsoft to “immediately withdraw this application from the Windows Phone Store and disable existing downloads of the application by Wednesday, May 22, 2013.”

It is clear that Google is not happy with what Microsoft has done and wants the company to take proper actions in order to stop the update from being made available to other consumers. According to Google, not showing ads in the YouTube app is a direct violation of the terms and conditions of the company’s YouTube API.

Google’s letter, which was addressed to Microsoft’s Todd Brix also said: “Unfortunately, by blocking advertising and allowing downloads of videos, your application cuts off a valuable ongoing revenue source for creators, and causes harm to the thriving content ecosystem on YouTube.”

But it so happens that Microsoft did not do this on purpose, at least this is what Microsoft is saying. Microsoft was fast enough and quickly replied back to the letter that the company has received from Google. “We’d be more than happy to include advertising but need Google to provide us access to the necessary APIs,” a Microsoft spokesperson said.

So it is clear that Microsoft wants to do the right thing, may be the necessary API are not being made available to Microsoft. The company also took into consideration what Larry Page said about Microsoft at Google I/O and said, “In light of Larry Page’s comments today calling for more interoperability and less negativity, we look forward to solving this matter together for our mutual customers.”

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