Publishers and Amazon Locked in Price War

Mac Slocum
April 8, 2008 | | Comments (0) | Listen Speech Icon

The UK's Times Online says Penguin, Bloomsbury and other publishers are trying to woo customers with steep discounts on their own Web sites. Amazon isn't happy about the cuts:

There are fears that Amazon may retaliate by regarding a publisher’s online price as the recommended retail price and applying its trading terms to that. If a publisher discounts a £20 book to £15 online and Amazon has a contract for a 50 percent discount on the full price, Amazon would pay the company £7.50 instead of £10. Publishers say that this would be unfair and could ultimately drive up prices.

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