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That's incorrect. Their position is that there's not a significant amount of CC licensed music without an NC attached, and it's too difficult to tell the difference, so they're banning all CC music regardless of whether or not it's CC-NC.

Well, they had issues with using non-commercial CC licensed music in commercial situations. But instead of simply limiting their use to commercial CC licensed music, they discontinued all CC licensed music. It seems like too sweeping of a measure.

Yep. Seems like the whole issue was blown way out of proportion.

Nope, they banned all CC works instead of noncommercial ones.