Synergi from
http://www.engadget.com/2010/02/05/hachette-book-group-also-pulls-away-from-amazon/2#comments
This is how it really is. The Publisher has a suggested retail price, lets say its 30 dollars. They then tell Amazon they will sell it to them at wholesale prices which is normally 50% lower then the suggested retail price. So Amazon agrees and buys the books at 15 dollars.
Now this is where it gets interesting. Once amazon buys the books they can sell it for 18 bucks or 10 bucks or whatever they like. But now the publisher is saying, well yea you bought it for 15 from us but you can't sell it for 10. Basically they are telling Amazon how they must price the books to match up with Apple. How this is even legal I'm not sure.
Why people would support the publishers and Apple I'm not sure either. Under this new pricing, Amazon actually will make a profit on books. Before they sold to the consumers at a lost to help drive Kindle sales which is fine. If they rather use their budget to benefit the consumer and rely more on word of mouth instead of a lot of advertising, good for them.
That Steve Jobs was so smug that book prices from Amazon would be the same as theirs before anyone even went to the table with Amazon is crap.
And, under this new model, authors make less not more. They are trying to preserve paper books dinosaur book model. We are now in the electronic age, its time they restructure their business model to reflect that instead of trying to kill Ebooks in their tracks.