The announcement confirms earlier reports that Amazon had acquired 3D mapping application UpNext earlier this summer for that exact purpose.
Both Apple and Amazon, as well as third-party developers, have until recently relied on Google's Maps API to power location-based applications on iOS and Kindle Fire devices. Apple has also used a native Maps application powered by Google that will not make its way to iOS 6. Amazon's original Kindle Fire did not come pre-installed with any mapping application.
The move further sets Amazon's Kindle Fire devices apart from other tablets that run less customized versions of Android. It's biggest effect will be on developers releasing apps with mapping or location-based features for the Kindle Fire and Kindle Fire HD. Amazon promises the transition will be "easy" for developers, but it's one more step they have to make to ensure their applications run smoothly on Amazon's devices.
Amazon is also setting the stage for its own location-based advertising business. Amazon is clearly interested in ad revenue opportunities, if the display ads it has plastered on the screensavers of its Kindle e-readers and Kindle Fire tablets are anything to go by.