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Technical vendor lock-in is a popular way to generate monopolies without getting hit by anti-trust.
It would be a lot better if the entire industry converged on a single standard, so that the publication quality of eBooks was heightened.
But in a narrowminded context it is easy for companies to focus on:
1. As large margin per sale per customer as possible (even when the customer base potential is enormous)
2. A large market share compared to the competition as possible (even when the competition isn't doing too well)
The sales target for Amazon should be about 1 billion books sold every week, but I guess they are pretty happy with their crappy sales figures they have today :-P
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