In the desktop version of chrome we can add the Adblock extension in order to prevent ads on YouTube etc. Why would Google allow an app like this in their Chrome Web Store because this would reduce revenue from youtube ads? What am I missing?
Because that would be a surefire way of driving out all of their even remotely tech-savvy users. People can always use Firefox, Opera, Edge or whathaveyou if Google decides to make their own product awful to use.
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