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I have no idea about the timeline. I do know that Sony, Nook, and Kobo all chose EPub after the Kindle was in development (Sony) or released (Nook and Kobo).
I have no idea why Overdrive initially decided to use only EPub books. They were using Mobipocket books for a while but they switched purely to EPub at some point in time.
I do know that Overdrive is its own business and made its own decision to use only EPub. None of us are privy to the reasons behind that decision. It could be that Amazon was being unreasonable. It could be many other possibilities, like EPub is more commonly used outside of the US then the Amazon format.
Whatever it is, Amazon is finally going to have presence at the library and that is great news for the millions of Kindle owners in the US.
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