Amazon chose to meet the publishers' terms because publishers began to withdraw books from Amazon:
> Macmillan CEO John Sargent had been meeting with Amazon to discuss getting full control over e-book prices, but Amazon refused to budge and all Macmillan's books were temporarily removed from Amazon—including the print versions. Amazon eventually relented and is allowing the books back on site, and is going along with Macmillan's demands for higher e-book prices.
> At issue is Amazon's practice of setting nearly all new e-book releases at $9.99 no matter what it's paying the publisher. This means Amazon may be paying the publisher $14 per title, for example, but is intentionally taking a loss on sales in order to push cheap e-books to Kindle users.
Amazon was paying the publishers the full price they demanded -- the issue was not about publisher profit. Instead, Amazon intentionally took losses to promote ebooks as loss leaders. Publishers threatened to remove their books unless Amazon only sold their books at pre-specified minimum prices.
Yes, Amazon protested Macmillan's eBook policy changes by the temporary Macmillan boycott. But don't forget what Amazon was protesting: Macmillan was refusing to sell eBooks to Amazon at the higher pre-Apple wholesale price that permitted Amazon to set its own price downstream.
Let me say that again. Macmillan demanded that Amazon pay them less money per eBook so that Macmillan could control the price Amazon charged the end consumer. That sounds obviously anti-competitive to me.
Indeed; I think the lawsuit intends to prove that Apple collaborated in the publishers on forcing the new prices, but that's an allegation I've never seen evidence for.
> Macmillan CEO John Sargent had been meeting with Amazon to discuss getting full control over e-book prices, but Amazon refused to budge and all Macmillan's books were temporarily removed from Amazon—including the print versions. Amazon eventually relented and is allowing the books back on site, and is going along with Macmillan's demands for higher e-book prices.
> At issue is Amazon's practice of setting nearly all new e-book releases at $9.99 no matter what it's paying the publisher. This means Amazon may be paying the publisher $14 per title, for example, but is intentionally taking a loss on sales in order to push cheap e-books to Kindle users.
http://arstechnica.com/gadgets/news/2010/02/publishers-conti...
Amazon was paying the publishers the full price they demanded -- the issue was not about publisher profit. Instead, Amazon intentionally took losses to promote ebooks as loss leaders. Publishers threatened to remove their books unless Amazon only sold their books at pre-specified minimum prices.