Microsoft and Google call YouTube app row ceasefire -

Google has decided to back down and build bridges with Microsoft following a spat over a YouTube app on Windows Phone.

The companies have said they'll now work together on an app to support Windows Phone, which should be available to users very soon.

The pair added in a statement that Microsoft would replace the existing YouTube app in Windows Phone Store with the previous version during this time. They also said that the new app will support ads.

The ceasefire comes after months of rowing. Back in January Microsoft claimed Google was preventing it from building a YouTube App for Windows Phone and in turn breaking competition laws. It said at the time the company was creating an unfair market and pushed for an investigation.

Last week, Microsoft received a cease and desist notice asking it to remove the app from the Windows Phone Store and disable existing copies by 22 May. This app, Google alleged, violated YouTube's terms and conditions as it stripped out ads.

Google seems to have realised that the best possible answer is to work with Microsoft and ensure it gets its ads on the new app too.