As the competition heats up and regulators exert more pressure, Google has decided to cut down on the revenue it receives from customers buying third-party apps via its cloud app marketplace.
The news first broke on CNBC, which reported that an anonymous person familiar with the matter had said the company will reduce its “take fees” from 20 percent, down to three percent.
Later on, answering CNBC’s questions via email, a company spokesperson confirmed the changes are coming, although no concrete figures were mentioned.
“Our goal is to provide partners with the best platform and most competitive incentives in the industry,” the email reads. “We can confirm that a change to our Marketplace fee structure is in the works, and we’ll have more to share on this soon.”
Two months ago, Google also cut its take fees for Play Store, the Android app marketplace. Now, instead of the previous 30 percent, the company takes 15 percent for the first million in revenue that a developer earns in a year.
The imminent change will put Google in line with its biggest competitor in the cloud market, AWS, which currently takes a listing fee of about 5 percent, it was said. Allegedly, the AWS marketplace generates about $1 billion to $2 billion in annual revenue.
Furthermore, Microsoft also cut down its take fees for Azure, from 20 percent down to three percent, this past July.
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