Ok, let me explain this in simple terms that might make it clear how this is a crime or at least could be construed as one.
I create a product called XYZ and sell it to Amazon for $7 each. Amazon then sells it for whatever price they want to sell it for, but I always get $4.99 each for them. Amazon can sell it below their cost for all I care, I get my money after all. But let's just say that Amazon was selling it for $8.
Now Apple comes along and says I will sell XYZ for whatever price you want me to sell it for, but I will take 30% to cover our costs and make a profit.
Ok, so far there is no problem here as far as the law is concerned, as it is simply a different business model that Apple chose to use.
So, I chose to sell through Apple for $9.99, which nets me slightly less than from Amazon, but I figure I will make enough sales to make up for the lower dollar amount. And I may not be able to go any cheaper due to my costs per unit.
But now, Apple comes in and says, oh but there's one more catch, you can't allow Amazon to sell it cheaper than we are selling it.
Now, I have to go to Amazon and say you can't sell the product for less than $9.99, which means a $1.99 increase over their previous price and that is simply so that I can sell through Apple and comply with their most favored nations clause.
This is the part that I think most people forget about and don't realize how much it really did increase the amount consumers are paying for eBooks.
Competition is good and drives prices down, most favored nations clauses are bad and drive prices up.