Amazon to compete with Google on Android apps

By Dow Jones Newswires-Wall Street Journal
Posted Oct. 7, 2010 at 2:35 p.m. Inc.  plans to open a software-applications store for smartphones running Google Inc.’s Android operating system, putting it in head-to-head competition with Google’s own digital-app store.

According to an Amazon document for developers viewed by The Wall Street Journal, Amazon would take a 30 percent cut of sales, with the developers keeping the rest. The document includes a stipulation that the apps can’t be offered at a lower price elsewhere.

The revenue-share split is consistent with other app stores, such as Apple Inc.’s  industry-leading iPhone App Store.

Amazon is asking developers to commit to putting up apps that are already publicly available within two weeks of accepting the agreement, according to the document. Future apps must also be delivered within two weeks of the apps’ initial availability on any similar marketplace.

Some developers who have been approached by Amazon about the new app store said they haven’t been told what the store will be called or when it might open.

An Amazon spokeswoman said “we don’t comment on rumors and speculation.” Google didn’t immediately respond to a request for comment.

Amazon’s app-store plan was reported by the TechCrunch Web site.

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