Last week, Microsoft's YouTube app for Windows Phone came under fire for not adhering to some of Google's requirements. The result was an ultimatum from Mountain View, requesting that Microsoft make the necessary tweaks by May 22nd or pull the app entirely. Today, which just so happens to be that aforementioned date, Microsoft has released a new version of its YouTube app for Windows Phone. This time around, video downloads are disabled -- users who already have the app won't retain this functionality, either -- but one important feature is still missing: ads. It's unclear whether Google approved of this update, though that does seem unlikely, but we've reached out to Microsoft for comment. In the meantime, WP users can nab the new app via the Windows Phone store.
Update: Microsoft responded with the same line it gave to other news outlets such as ZDNet. It doesn't exactly address our questions, but it's proof that Redmond is in damage-control mode. Head past the break for the full statement.