Most people have extremely weird ideas of what's considered piracy and what isn't. Downloading a video game rom is piracy, but if you pay money to some Chinese retailer for an SD card containing the roms, that's somehow not piracy. Exploiting the free trial on a streaming site by using prepaid visa cards is somehow not piracy either. Torrenting an album is piracy, but listening to a bootleg on YouTube isn't.
YouTube noticed this at some point and is now happy to let everyone know how much pirated music is available on their site. One of their main points for shilling YouTube premium is how their music catalogue is way better than Spotify. Of course the piracy site has more. That's always how it works. Spotify actually has to license the music on their platform and is subject to copyright law. They can't just get the Neil Young discography from soulseek one day and wait until his estate notices, facing no repercussions whatsoever aside from agreeing to a takedown request. Imagine if Pirate Bay or Napster were considered completely above-board businesses just because they took down torrents if explicitly requested by the copyright holders.
Not that I'm complaining especially when a lot of the music on youtube isn't publicly accessible anywhere else. It's just been extremely strange to see this go from an "open secret" to something they're shouting from the rooftops and face no repercussions for. In the future I want everything to be like that and I'd rather keep youtube how it is than see them get the punishment that by all rights they should be getting. It's just so strange that this is the position things have ended up in.
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YouTube doesn't have a say in this, it's up to the copyright holder of each individual song. YouTube just detects if a song is copyrighted or not then gives the owner the option what to do. The three common ones are
So whoever holds the rights to Phil Collins song is the one responsible for your video being disabled. While whoever holds the rights to the song Joe Schmo decided to go with option 2 or 3.
This process has mostly been automated. So it feels like YouTube is doing it but they are just following the orders of the copyright holder.
The system is a bit overzealous in some cases and even fair use gets flagged.That's on YouTube. But to be fair, it's very hard to have an automated system detect the difference between fair use and not. YouTube should just implement a better way to dispute false copyright claims.