The cloud sync market is not exactly lacking in competition. Dropbox dominates and a number of big companies and startups are all offering similar if not identical services. Normally when this happens, the competition drives down prices and drives up features.
That and the fact that Amazon's Cloud Drive isn't exactly a massive success accounts for the new, cheaper prices. It now costs just $10, £6 or €8 to get 20 GB of additional storage for a year, significantly less than the competition.
The price drop is not random, Amazon is now unveiling Cloud Drive in several more European countries, just as the Kindle Fire becomes available there.
Cloud Drive was already expanded to the UK, Germany and France last month and is now becoming available in Italy and Spain as well.