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Originally Posted by LuvReadin
And it's not likely to be any time soon either. There's a big problem about Kindles and copyright via libraries. Overdrive has managed to sort out its compatibility with Kindle in the US, but Penguin have recently pulled out of the deal and refuse to allow their books to be used with Kindle for US libraries (not sure exactly what the problem is, but I presume it's something to do with it being easier to circumvent DRM on the Kindle than on other ereader), so I won't be at all surprised if the other publishers don't follow suit.
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No. Penguin doesn't allow any library to lend its new titles. The policy is not restricted to Amazon. FWIW, Penguin does allow libraries to lend its backlist, for both kindle and epub.