It probably works the other way around. Amazon is incentivized to not compete with their customers because they’re already collecting rent on them thru AWS. Why

It probably works the other way around. Amazon is incentivized to not compete with their customers because they’re already collecting rent on them thru AWS. Why drive your competitor out of business if they already pay you yearly fees? And more directly to your point, Amazon presumably evaluates each market they enter separately. They have a big enough war chest to run at a loss forever, but they won’t do so because it’s not good business