Earlier quoted context omitted.
The only thing is that this isn't anti-trust. If you want to use a google product, then you have to follow the google rules. I think the rules are a bit ridiculous, but YouTube doesn't have a monopoly on online videos. Well, except maybe cat videos.. so there might be a case in there somewhere. No app or company has a "right" to create Youtube apps. For anti-trust, one would have to prove a monopoly and they would be…
According to http://www.ebizmba.com/articles/video-websites YouTube gets 450,000,000 uniques against NetFlix who get 55,000,000. I'd argue there different markets and the key comparable would be dailymotion at 27,000,000. I think there is a good chance it'd pass the monopoly test.
(Which is why the DOJ defined the market as the one for x86 PC operating systems. That excluded Mac OS from being considered a competitor to Windows, as it ran only on PowerPC at the time.)