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This is the result of the publishers' contract with Apple. If they let other bookshops undercut the iBooks store then Steve will throw a chair around or something. And right now I suspect they're far more interested in building a solid presence on the iPad than in catering to small stores like BoB.
BoB's scare-story announcement needs to be taken with a big pinch of salt - a lot of their prices are already well above the $14.99 point and the REP will be less than BoB currently charges (though that doesn't mean that BoB will adjust their prices down to match). But I'm sure there will be a bunch of small price rises as well.
Of course, this is a good way to fire up a shopping-spree among the gullible...
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