Google (GOOGL) appears to have successfully completed the course “Learn from your rivals’ mistakes 101.” Less than a week after Apple (AAPL) was hit with a lawsuit forcing the company to stop prohibiting third parties from offering alternative payment sources on the App Store, Google announced some significant changes regarding its cloud marketplace. Google will reduce the revenue share it keeps when users buy something from the Play Store. The amount of revenue the company keeps will be slashed from 20% to 3%.
This announcement follows a similar one posted last July when Google confirmed that it was cutting the service fee for developers in half after the first million they earned. Just like that, the service fee for many went from 30% to 15% in just a day.
why it matters
This move by Google is a clear signal to other industry rivals such as Amazon Web Services and Microsoft Azure. The company risks falling behind these giants, and it hopes to attract some independent software makers to sell their products on its platform.