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Alphabet Weaker as Report Says it is Slashing Fee on Cloud Sales By Investing.com

by Mike Robinson

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© Reuters.

By Dhirendra Tripathi

Investing.com – Alphabet stock (NASDAQ:) 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.

Google retains 20% of sales when customers purchase software from third-party vendors through its Cloud Marketplace. The report states that Google plans to cut this figure to 3%.

Google is trailing Microsoft (NASDAQ) Azure and Amazon (NASDAQ) Web Services in Cloud infrastructure.

Amazon Web Services is the market leader and charges a commission of 5%. Microsoft, however, sets it at 3.3%.

This is a reaction to increased competition. It comes as regulators around the world are monitoring pricing practices in Big Tech.

Google’s Cloud segment suffered an operating loss in the second quarter of 2016, resulting in $4.62 billion revenue.

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