The war is officially on between Apple and Google with their competing mobile operating system; iOS and Android. Apple recently built their own Mapping system for iOS 6 and removed the integration with Google Maps. However, the most recent update to iOS 6 also drops the YouTube app.
According to The Verge, the removal of the YouTube app from iOS 6 was done because Apple and Google had come to an end of their licensing terms.
Our license to include the YouTube app in iOS has ended, customers can use YouTube in the Safari browser and Google is working on a new YouTube app to be on the App Store.
However, this is not the end of the YouTube app on iOS 6 because Google is reportedly working on a standalone YouTube app for iOS 6. This was mentioned in the Google India event.
YouTube is probably the most popular app on the iOS operating system and Google will definitely come up with a replacement before iOS 6 is shipped to consumers. However, it looks like the default app will still be available on older iOS versions.
Apple’s decision not to renew the license for the YouTube app may be based on their thinking to get rid of as much Google dependency as possible. I won’t be surprised if Apple also decides to go with Bing as the default search engine in future. If that happens, it would be a huge blow for Google because they make a large chunk of their revenue from the search option in iOS.