Google had been reducing the amount of revenue that it usually kept when the customers bought the software from other vendors but on their cloud marketplace. The take rates are highly increasing and there had been a lot of opposition going on for this.
Apple faced the issue too and they even lost at court and had to lower their rates. It is a good thing because of the fact that the individual vendors were having a lot of trouble because of this. They hardly had any profit from these sales as they had to keep on paying the high take rates.
However because of the ongoing high pressure on the top tech companies like Apple, Google and Microsoft the so-called take rates have been forced to be reduced. The Google platform had taken the step about this now. They have been discussing this and now it seems that they have arrived at a decision about what to do and what percentage needs to be reduced in the form of revenue.
Finally, they have announced that Google is cutting its percentage revenue share by 3 to 20%. This was more of a leak than an announcement by a person who is associated with the matter.
Big tech companies are in a problematic situation now and in order to remain in competition among the others in the market, they have to do what needs to be done. Google is also a competitor in this race per se and there is no way that they are going to just sit idly by.
“Our goal has always been the best and it is to provide partners with the best platform that they can work on. It should also be a platform that has the most competitive incentives in the industry,” a Google spokesperson said in a statement to the news.
“We can also go ahead and confirm the fact that there is a change going to happen soon to our Marketplace fee structure. It is already in the works, and we will definitely finalize matters and then we will have more to share on this soon.”
Hopefully, this will work out in the favor of both and a just system will be established where both of the parties are being benefitted instead of just one. That is what we are hoping for.
