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We develop a framework suitable for obtaining simplicity criteria for reduced -algebras of Hausdorff etale groupoids. This is based on the study of certain non-degenerate -subalgebras (in the case of groupoids, the -algebra of the interior isotropy bundle), for which one can control (non-unique) state extensions to the ambient C*-algebra. As an application, we give simplicity criteria for reduced crossed products of abelian -algebras by discrete groups.

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