After Steve Jobs introduced Apple Inc. (Nasdaq: AAPL)'s iPad tablet device last week and promised publishers more favorable terms in its e-book store (best-seller prices of $12.99 or $14.99, of which publishers would receive 70 percent), Macmillan informed Amazon that it expected the retail giant to match those terms. Amazon has a flat rate -- $9.99 -- for best sellers.
As the battle raged on last week, Amazon halted sales of all Macmillan titles -- both e-books and physical books -- by removing the "Buy" buttons on the pages. A brief visit to the site suggests that the retail giant still hasn't begun selling Macmillan titles again.
Amazon said in its statement yesterday:
We have expressed our strong disagreement and the seriousness of our disagreement by temporarily ceasing the sale of all Macmillan titles. We want you to know that ultimately, however, we will have to capitulate and accept Macmillan's terms because Macmillan has a monopoly over their own titles, and we will want to offer them to you even at prices we believe are needlessly high for e-books.
— Erin Barker, Digital Content Reporter, Cable Digital News