Alphabet Inc’s Google will take a smaller cut when customers buy software from other vendors on its cloud marketplace, CNBC reported on Sunday.

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The Google Cloud Platform is cutting its percentage revenue share to 3 per cent from 20 per cent, CNBC said, citing a person familiar with the matter.

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“Our goal is to provide partners with the best platform and most competitive incentives in the industry. 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,” a Google Cloud spokesperson said in a statement to Reuters.

Earlier this year, Google cut the service fee it charges developers on its app store by half on the first $1 million they earn in revenue in a year.