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This makes sense. My guess is that Amazon was lower prices by taking a loss on this service, trying to scale it up. They definitely have the cash necessary to sustain losses until they can drive down competition!


Isn't this (operating at a loss until you steal enough market share from competitors to beat them) illegal?


Not with the magic of Hollywood style accounting.


Only if you succeed in becoming a monopoly. Otherwise it's just how capitalism is supposed to work.




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