Sharing YouTube videos on website illegal?

Okay guys, I'm pretty pissed off. I've been working on a new website and it's been coming together very nicely.. I'm starting to gain a big portion of the market and things are going right on track.

UNTIL

Now one of the main competitors in this niche is telling everyone(facebook, their website, etc) that we are a SCAM. Keep in mind that we are not making any money off of this website as of yet. We are just providing news(we post the videos off youtube that we think are the coolest)

So my question is that if we embed a youtube video on our website is this illegal?

That's what they state and I think they are just honestly scared of the competition considering were growing so fast.

Question : if was illegal to share youtube videos why on the name of god they have the option into their site ?
Answer : - ANSWER YOURSELF ! lol

ofcourse depend what kind of videos you are gather , let's say you put a crap script to scan and grab hundreds of youtube videos per day to display on your site with no damn reason .... that's can be annoying / spamming / boring for front-ending users but ... still ..

lol

thats exactly what I have said but they insist to keep slandering our website. It's a pretty desperate move in my opinion. Thanks for reassuring me that I'm in the right

They are public domain once put on YT, the uploader agrees to this, no you cannot edit and reup them but you can embed away. That's why the have the fucking embed feature

exactly what my point was. They are clearly scared of competition so they wanted to tell their consumer we are a scam.

I would suggest posting on your site regarding the situation and the stupid obviousness of the legality and legitimacy of your actions. As Chris Matthews says, "leave no shot unanswered."

So now one of their fans has looked up my server and found my SEO website(SEO is how I currently make a living) and are posting all over facebook/twitter that my marketing company is a scam.

Anyone have some suggestions on what to do? I would hate for any of my clients or potential clients to see any of this..