Google orders Microsoft to kill YouTube app for Windows Phone

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Google (NASDAQ:GOOG) has mailed a cease-and-desist letter to Microsoft (NASDAQ:MSFT) demanding the removal of a new YouTube video application for Windows Phone introduced last week.

According to a copy of the letter obtained by The Verge, Google contends the absence of advertising within the Windows Phone app is a direct violation of the terms and conditions contained in the YouTube API. The report notes that Microsoft built the YouTube app without Google's consent and incorporated features that expressly halt ads from playing, undermining both Google's revenue stream and also denying third-party content creators compensated via Google's AdSense program.

"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," says Google's letter, addressed to Todd Brix, senior director of Microsoft's Windows Phone Apps Team. The letter calls on Microsoft to "immediately withdraw this application from the Windows Phone Store and disable existing downloads of the application by Wednesday, May 22, 2013."

Microsoft said it hopes to resolve the dispute. "We'd be more than happy to include advertising but need Google to provide us access to the necessary APIs," a Microsoft spokesperson told The Verge. Microsoft also noted comments made Wednesday by Google co-founder and CEO Larry Page, who blamed negativity for holding back technological progress. "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," Microsoft said.

YouTube now eclipses 1 billion users worldwide and is the largest source of mobile data traffic across all international markets, accounting for more than 25 percent of total network data in some regions, according to broadband equipment vendor Sandvine.

For more:
- read this Verge article

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