Google sends Microsoft a Demanding Letter

Just yesterday, Microsoft was sent a demanding letter from Google insisting that they remove the YouTube app from Windows Phone platforms.  The letter states:

“We request that you immediately withdraw this application from the Windows Phone Store and disable existing downloads of the application by Wednesday, May 22, 2013.  We were surprised and disappointed that Microsoft chose to launch an application that deliberately deprives content creators of their rightful earnings, especially given that Windows Phone 8 users already have access to a fully-functional YouTube application based upon industry-standard HTML5 through the Web browser.”

The letter stated violations of  YouTube and the YouTube App terms of service, including the blocking of advertisements – which is the way YouTube reaps revenue – allowing video downloads and playing videos that partners have blocked on certain mobile devices.

After Google’s demands became public, earlier today, Microsoft issued a statement:

“YouTube is consistently one of the top apps downloaded by smartphone users on all platforms, but Google has refused to work with us to develop an app on par with other platforms,” Microsoft said via a spokeswoman. “Since we updated the YouTube app to ensure our mutual customers a similar YouTube experience, ratings and feedback have been overwhelmingly positive. We’d be more than happy to include advertising but need Google to provide us access to the necessary APIs.”

The back-and-forth between these two large corporations has not ceased as of now.  Google’s current CEO, Larry Page, spoke out at his company’s I/O developers conference yesterday, threatening Microsoft for all of the “people milking off one company for their own benefit”,as he referred to Microsoft integrating Google Chat into its Outlook.com email service, while at the same time blocking efforts by others to tie into Skype. “We certainly struggle with people like Microsoft,” Page added.

Microsoft yesterday after Page’s bickering said that they looked forward to solving this matter together for Google and Microsoft’s mutual customers.

In fact, the two companies rely on each other more than the public dust-ups indicate. “There’s a lot of contested territory, but for Google to run their fundamental business model, they have to provide support for multiple platforms. So it’s not a zero-sum game. Windows benefits from YouTube on it, and Google benefits from YouTube on Windows,”  said Ezra Gottheil, analyst with Technology Business Research.

More info to come.  Keep posted!

~Michael~

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