Soon after Microsoft released a new version of the YouTube app for the Windows Phone, which actually functions like an app, there are fears that the app may get blocked soon for violating the terms of service.
The newly launched YouTube app along with the many features, allows users to download videos to the device. Besides that, it also strips out the ads from the YouTube videos, which are a major source of revenue.
While the YouTube ToS clearly state that you cannot modify, replace, interfere with or block advertisements placed by YouTube and also cannot store copies of YouTube content. Thus the app is clearly violating the ToS and may induce Google to block it. While Microsoft hasn’t yet commented on this, it did admit that it had to re-architect the YouTube API in order to make the app work.