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    Google says: Microsoft, remove YouTube you aren’t showing ads, Microsoft says: Okay, we will include ads then

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    Google is spitting the dummy at Microsoft’s new YouTube app for Windows Phone, claiming that it is breaching terms and conditions of using the company’s YouTube APIs by not including ads with its videos.

    The search giant sent out a cease and desist letter to Microsoft requesting that the YouTube app that Microsoft created without any input from Google would be taken down from the marketplace by the 22nd of May. “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,” Google’s letter said.

    Obviously this would hit Google’s own revenue, but it would also effect third-party creators that are making money through Google’s own AdSense program.

    Microsoft promptly responded to Google saying “We’d be more than happy to include advertising but need Google to provide us access to the necessary APIs,” and also nothing Google CEO Larry Page’s comments at I/O saying “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.”

    It seems that Microsoft wants to rectify the situation, so it’s up to Google to see what happens next.

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