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Originally Posted by daffy4u
The modification may have to do with the mysterious reason as to why MobiPocket still exists. Amazon could certainly have taken over and sold Mobi books as is. I still think there is some legal thing that keeps MobiPocket in play and Amazon with an tweaked version of mobi.
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Mobipocket as a distributor sells all books for full list price so that they aren't undercutting any of the sellers they distribute to. By making Kindle use azw instead of plain old Mobi they probably intended to avoid any problems that would have occurred had they had Kindle use regular Mobi and then been seen as undercutting everyone on price. Or something like that.