Microsoft and Google have apparently put their differences aside and are now building a compliant YouTube app together for Windows Phone. The app will likely be developed using YouTube’s iFrame API, will serve ads, and will be out as soon as next month.

“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,” the two companies said in a joint statement to TNW. “Microsoft will replace the existing YouTube app in Windows Phone Store with the previous version during this time.”

The apparent agreement and decision to work together follows a few episodes of back and forth between the two companies. The timeline below puts today’s announcement into perspective.

On May 7, Microsoft rolled out a new YouTube app for Windows Phone 8 that the company developed itself. The app included extra features such as being able to download videos from the site, and no ads.

On May 15, Google sent Microsoft a cease-and-desist letter regarding its YouTube app, pointing out the company had violated some of YouTube’s terms of service. Google requested that Microsoft either block or pull the YouTube app from the Windows Phone Store by May 22.

On May 22, Microsoft released an updated app with the download functionality removed. The company also offered the following statement:

Microsoft updated the Windows Phone YouTube app to address the restricted video and offline video access concerns voiced by Google last week. We have been in contact with Google and continue to believe that our two companies can work together to hone an app that benefits our mutual customers, partners and content providers. We’re earning new customers every day, with IDC reporting recently that Windows Phone posted the largest year-over-year gain among leading operating systems. We look forward to working with Google to maintain a great YouTube experience for the growing number of people who rely on both of our respective products.

Today, it appears that Google has finally agreed to play ball, though it’s not clear what Microsoft had to offer to pull off a deal. Ultimately, it appears that every Windows Phone user who uses YouTube will benefit from a Google-approved app.

See also – Rivals: The long burning turf war between Google and Microsoft

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