But later on Wednesday, a new version of the YouTube app will be available for Windows Phone users with two-thirds of Google's concerns addressed. While Microsoft says that it has no objections to playing ads before running YouTube videos, the update still does not allow YouTube ads to run on Windows Phone devices. The two problems fixed by Wednesday's update will prevent videos from being downloaded onto a device, and will restrict videos that were not set up for mobile play, from being viewed.
Today happens to be the deadline given by Google to Microsoft to take down the app, but Microsoft's new update will replace it by the time Wednesday is over. Will Google complain and threaten to remove the new app once more? We are keeping our nose to the ground and will update you when anything new develops.
source: TheVerge via Phonescoop