Benzinga | Oct 22, 2021 07:21PM EDT

Roku Shares Trade Lower On Tussle With YouTube

* Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) YouTube will no longer allow Roku Inc (NASDAQ:ROKU) customers to download the YouTube or YouTube TV apps to their devices starting Dec. 9, CNBC reports.

* The decision came after a months-long tussle between the companies that attracted the attention of Congress.

* Anyone who buys a new Roku device after Dec. 9 will not be able to install YouTube apps.

* Roku alleged Google of misusing its authoritative market power to force hostile terms on a competitor.

* An email sent from a Google executive to Roku counters Google's public statement that it did not ask Roku for special treatment before allowing YouTube apps on Roku devices.

* Roku alleged Google demanded special access to search data from Roku customers as a condition of allowing YouTube TV on Roku devices. Google also asked for prioritized search results for YouTube videos in Roku's search feature.

* Roku agreed to those terms but also asked that Google not seek any additional data. However, Google would not commit to that.

* Google denied the allegations.

* YouTube and Roku compete not just with streaming video devices but also in digital ads.

* Alphabet shares are trading lower following a tweet from a Bloomberg reporter Oct. 21 stating Google is lowering its cut from subscriptions on Google Pay from 30% to 15%.

* ROKU Price Action: ROKU shares traded lower by 4.05% at $320.30 Thursday.