"Microsoft has not made the browser upgrades necessary to enable a fully-featured YouTube experience, and has instead re-released a YouTube app that violates our Terms of Service," the statement reads. "It has been disabled. We value our broad developer community and therefore ask everyone to adhere to the same guidelines."
Microsoft initially complied with Google's previous demands to remove and redesign the app, which omitted the advertising features that are found on YouTube apps for other platforms. The Windows Phone variant was re-released earlier in the week, however it allegedly uses reverse-engineered ad code that Google still views as a violation of YouTube's terms of service.
In a follow-up statement, Microsoft acknowledges that the app is not working because the content is being blocked by Google. The company suggests it is "working with Google to resolve the issue," however no further details have yet to emerge.