Internet retail giant Amazon is reportedly planning to build its own Android-based apps store in what would be a further sign of apps fragmentation on the Google platform – and a possible challenge to Android’s own app ‘Market’. US website TechCrunch this week published specific details around pricing, developer royalties, and terms and conditions governing Amazon’s proposed new store, which is set to launch in the US.

It appears Amazon is planning to take strict control of the apps it will allow on its store; it notes that “we have sole discretion to determine all features and operations of this program and to set the retail price and other terms on which we sell Apps.” TechCrunch adds that apps will be “laced with Amazon DRM,” meaning they will only work on devices they approve. On that note, it’s also been reported that an Android-based tablet may be in the pipeline at Amazon, something that could bring some in-house competition for the Kindle family.

Like in the Apple iOS model, developers will be required to pay a US$99 fee to join the Amazon developer programme. The plan includes a typical 70/30 revenue share split, but – somewhat confusingly – Amazon will also offer developers “20 percent of the List Price as of the purchase date.” It is thought the List Price policy is in place to ensure that developers cannot sell apps cheaper on other platforms. If the app is available on other platforms, developers are required to update it at the same time on Amazon’s store as elsewhere.

Although free apps will be available, Amazon could have an advantage over Google’s App Market in terms of paid apps as Amazon already has a mature payments platform in place – while Google’s Checkout service is still in its infancy.

Amazon’s proposed app store would follow the lead of US operator Verizon Wireless, which recently launched its own V-CAST app store based on Android.