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Investing.com – Alphabet stock (NASDAQ:GOOGL) traded 0.3% lower in Monday’s premarket following a CNBC report that it is cutting the amount it keeps from sales on its Cloud marketplace.
When customers buy software from other vendors on its Cloud marketplace, Google keeps 20% of the sales. According to the report, Google now plans to reduce that drastically to just 3%.
Google trails Amazon (NASDAQ:AMZN) Web Services and Microsoft (NASDAQ:MSFT) Azure in Cloud infrastructure.
Amazon Web Services, the market leader, charges a 5% commission while Microsoft pegs it at 3%.
The move, a response to competition, comes at a time when regulators worldwide are closely monitoring the pricing practises of Big Tech, which are under pressure in other business segments.
In the second quarter ended June 30, Google reported an operating loss of $591 million from its Cloud segment on revenue of $4.62 billion.
