Amazon and Google start e-book sales in Brazil

An employee demonstrates the new Kindle Fire HD 8.9'' at Amazon's Kindle Fire event in Santa Monica, California September 6, 2012.

SAO PAULO (Reuters) - Amazon.com Inc (AMZN.O) and Google Inc (GOOG.O) both opened their digital bookstores in Brazil on Thursday, hot on the heels of e-book offerings by local booksellers in a fast-growing online retail market.

The simultaneous introduction of the two services highlighted the wide-open nature of Brazil's $12 billion e-commerce market. Low Internet penetration and a swelling middle class have spurred bets on strong growth for years to come.

Amazon will begin selling its Kindle e-book reader in Brazil in coming weeks for 299 reais, the e-commerce powerhouse said, ending months of speculation that it could arrive by acquiring a major competitor.

Brazil's biggest bookstore chain, Saraiva (SLED4.SA), is trying to sell its online business, but a person familiar with Amazon's strategy told Reuters in October that the U.S. company would stick to its focus on organic growth in foreign markets.

In Brazil, the Kindle will take on Samsung (005930.KS) and Apple (AAPL.O) tablets that often cost as much as twice their U.S. retail prices due to import tariffs, steep taxes and inflated local production costs. Local bookseller Livraria Cultura sells its Kobo e-reader for 399 reais.

The rival Google Play service will offer e-books and movie rentals on computers and mobile devices running Google's Android operating system. (Reporting by Brad Haynes and Alberto Alerigi Jr.; Editing by Lisa Von Ahn)