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Not necessarily. They might be doing this to get more customers on it since they're losing to Datadog.

Amazon has a long history of being willing to eat a ton of loss to kill competition like in the very popular diapers.com business.

They have me interested. Datadog does a far better job with logs but their CM product is wildly expensive. Happy to let someone else run Prometheus for me.

I used to work at AWS and I have no first hand knowledge in this case, but would guess it's far more likely that the engineering teams figured out a way to run it cheaper than at launch, and passed that savings along to customers.

doesn't have to be, they could sustain losses and count it as a marketing expense.

How is this even legal? Afaik in EU this kind of business practices are illegal.

American and European competition laws are very different.

In the United States - the thing that gets close attention is any attempt to coordinate to increase prices, even if that results in increased competition.

Decreasing prices to reduce competition gets a pass over here.