Google is reducing the amount of revenue it keeps when customers buy software from other vendors on its cloud marketplace, as the top tech companies face increasing pressure to lower their so-called take rates.
The Google Cloud Platform is cutting its percentage revenue share to 3% from 20%, according to a person familiar with the matter who asked not be named in order to talk about internal policies.
It's the cloud group's latest effort to become more competitive since Thomas Kurian joined as CEO in 2019 after a career at Oracle. Google, which trails Amazon Web Services and Microsoft Azure in cloud infrastructure, is trying to attract independent software makers to sell their products on Google's cloud.
"Our goal is to provide partners with the best platform and most competitive incentives in the industry," a Google spokesperson told CNBC in an email. "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."
Big Tech companies in recent months have been decreasing the amount of money they retain on their platforms, whether it's for consumer apps or business products. Some of the pressure is related to competition, while regulatory and legal concerns are also mounting.