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This will be good for the end customer - more places to buy means more competition and better services. As a Kindle owner I'm happy to have a new place to buy books, because I can convert ePub to Mobi. I'm assuming Google will use ePub, they'd be crazy to use a proprietary format.
ePub is the logical choice because the open format would be a huge, if not the main selling point over Amazon or Sony. Books would work on a browser, tablet or whatever portable PDA app that developers can dream up in Android. Google has their own distribution channels and software - Chrome and Android + Gears for offline reading, they'll want to use them. If somebody wants to develop an eInk reader that reads ePub they can now do so.
I think this is where Amazon's decision to use a closed system could bite them hard.
Greg
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