Microsoft Agrees to Host Ads in YouTube App

Google gives company May 22 deadline

After drawing Google's ire, Microsoft has agreed to include ads in its Windows Phone YouTube app, CNET reported.

Google sent Microsoft a cease-and-desist letter earlier this week, demanding the software company pull the ad-blocking YouTube app from the Windows Phone marketplace. Google claimed the app violates YouTube's API and gave Microsoft a deadline of May 22 to axe the app and disable all existing downloads.

"Unfortunately, by blocking advertising and allowing downloads of videos, your application cuts off a valuable ongoing revenue source for creators," said Google in the letter, arguing that ad-blocking hurts the "thriving content ecosystem on YouTube."

Microsoft replied that it would be "more than happy to include advertising" as long as Google provides the company with "access to the necessary APIs."