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This really isn't news. Amazon started publishing some known (and unknown) authors a few years ago. They're just adding editors and getting more serious about it. Last year they already had several imprints; they just added a horror imprint this year.
They have approached both trad authors and indie authors who are doing well. Karen McQuestion had a deal with them, although I think she is now with ... oh darn. Harper? I don't remember. There's a few others that have been picked up by Amazon and I know at least one author...no actually 3 authors who were approached by Amazon. They've been at it a while.
As for monopoly that will only happen while they are front-running and being better at things that other companies. Other companies will start getting more and more competitive to keep up--or surpass!
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