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Ignoring for the moment the question of what a fair price of an eBook should be. If you look just strictly at what Amazon is doing - selling goods at a loss in order to establish market dominance, then that certainly seems to fit the definition of "predatory pricing".
BTW I remember Wal-mart doing the same thing in small towns across America, and after driving the competition out of business, Wal-mart would invariably raise prices.
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