Google Inc (GOOG), Microsoft Corporation (MSFT): No Homemade YouTube!

Google Inc (NASDAQ:GOOG) and Microsoft Corporation (NASDAQ:MSFT) are not exactly the best of friends, even though they are fraternity brothers in the tech world. These two companies have had their share of run-ins, scraps and rumbles over the years, and though publicly the companies seem at least respectful of each other, behind the scenes it’s a different story.

On the outside, it seems much is hunky-dory when one looks at a Windows Phone and sees the YouTube app on it. For certain (obvious) reasons, Microsoft Corporation (NASDAQ:MSFT) does not pre-install the app on its smartphones but instead allows the app in the Windows Phones Store for users to download. That seems to be a Kumbaya moment, doesn’t it? All is well in OTA (Other Than Apple) Land! Well, except for one small, tiny, thing …

Google Inc. (GOOG)The YouTube app isn’t a genuine Google Inc (NASDAQ:GOOG) article. And Google is a little bit not pleased about it. A cease-and-desist letter was sent to Microsoft Corporation (NASDAQ:MSFT) from Google, asking that the latest updated version of the Windows Phone YouTube App be pulled from the Windows Phone Store and have all available downloads disabled within the next seven days.

Why does Google Inc (NASDAQ:GOOG) care so much about this piracy? It seems to point out three reasons for its dissatisfaction. The first, and for Google the most troublesome, is that the Microsoft version of the app disables ads from playing, which of course is a staple of YouTube and Google revenue. “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,” said the letter from Google to Microsoft.

The second is that the app allows users to download videos from YouTube, and the third is that the app allows users to see videos that otherwise would be restricted on mobile device platforms. So much for brotherly love between these two – it’s about sibling rivalry for Microsoft Corporation (NASDAQ:MSFT) and Google Inc (NASDAQ:GOOG). What do you think? This is much ado about nothing, and should Microsoft cease and desist? Give us your feedback in the comments section below.