The Publisher provides the list price. Kobo then discounts at whatever level they wish.
Not so under the Agency Model that was just struck down by the Court.
Under the Agency Model (once known as Fair Trade before that was ruled illegal), the publisher set the price and granted a fixed percentage to the seller, in order to artificially keep pricing high, and to undercut Amazon in favor of Apple.
The settlement with three of the participating publishers will force them to refund $69 Million to consumers, to compensate for screwing us on the pricing.