Microsoft's new YouTube app for Windows Phone has been available for about a week, but it didn't take long for Google to kick up a fuss. Why? Because the app blocks ads, giving Google's potential revenue a kicking.

Google claims this violates the YouTube API Ts and Cs, demanding that Microsoft remove the app by May 22. According to The Verge, Microsoft built the app without the go-ahead from Google.

Now Microsoft has responded and said that it will include advertising if that's what Google really wants, but with one proviso. "We'd be more than happy to include advertising but need Google to provide us access to the necessary APIs," it said.

Play nicely

Of course, it's all of us who get punished at the end of the day, and a lack of app will mean users are forced to stick with the Google mobile web version when watching YouTube.

"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," added Microsoft.

But where does Google now stand? We contacted Mountain View to see how it feels about Microsoft's response and will update when we hear more.