Earlier this year Microsoft introduced an unofficial app that let Windows Phone users to watch YouTube. Google, unimpressed by Microsoft's move asked it to immediately withdraw the application from the Windows Phone Store. The app apparently had a lack of adds, which was in direct violation to the terms and conditions of YouTube's API.
Coming to the present, the feud between the two companies seams to have been resolved, as Google have announced that they will be working with Microsoft to bring the official YouTube application for Windows Phone.
The two companies in a joint statement said "Microsoft and YouTube are working together to update the new YouTube for Windows Phone app to enable compliance with YouTube's API terms of service, including enabling ads, in the coming weeks. Microsoft will replace the existing YouTube app in Windows Phone Store with the previous version during this time".
The existing app will be replaced with new official one, which is currently in the works.
Microsoft since long have been complaining about Google preventing it from offering a fully featured YouTube app to it's Windows phone customers.
The Verge has new update: The new app being developed by Microsoft likely to still be deprived full functionality. This means things haven't changed at all. Apparently the company has been given limited API by Google, in order to build its new app. Microsoft has not commented regarding this.
It would be unfortunate if the Windows Phone users will not be able to get the privileges that android or a iOS user gets. Let's hope Google changes it's stand on this.