Originally Posted by Barcey
This is why everyone needs to contact the American DOJ and complain about their actions against the publishers. If they aren't allowed to conspire to implement agency pricing then Amazon will gain a monopoly and force the authors to sign contracts just like this one.
Amazon isn't going to get a monopoly. Authors are free to sell at BN, at ARE (if they're in that genre), at Smashwords and its affiliates. Amazon can't force authors to take a 3% royalty; Smashwords offers 85%.
Amazon gets more sales... but authors who will take 70% exclusive with Amazon over any sales at SW, aren't going to agree to 3% at Amazon instead of 85% at SW. They know they'd sell more units at Amazon, but won't expect to sell 28x more--and be willing to allow Amazon to take 97% in exchange for SEO and file-hosting software.
(It occurs to me that I can't tell how sarcastic you're being. Doesn't matter; there are some people who really do think Amazon is going to pull some kind of bait-and-switch. And they might try it--but, even as much as they dominate the market, they don't own it.)