Originally Posted by HarryT
I understood Bill to be saying that book retailers wouldn't be happy if Baen sold books on their own (Baen's) site at a lower price than they were supplying those book to the retailers at. That's a very different situation to a retailer deciding to sell something as a loss leader.
The MFN clause doesn't end there though. It prevents Amazons competitors from offering the book cheaper because they have a more efficient business or fewer overheads for services offered and don't need to charge authors a 30% cut.
It's MFN when applied across the same layer that is an issue, ie between retailers.
Although i still think Baen should be free to sell on their own site at any price they like. Amazon provide more value added services, the price is a little higher because of it.
Edit: Dumped the rest of the text since it's only going to cause circular arguments