[stonetools]

Each contracted seller has its own MFN clause, and it started with Apple. Before that, publishers were able to set book prices differently at each store they sold to.

Actually, I believe Amazon had one before Apple.

Publishers are welcome to sell their books for $12.99 at Apple and Amazon, and offer them on their own site at $14.99. It's just that nobody does it that way. Publishers would *like* to sell at $12.99 at Apple and Amazon, and $9.99 at their own sites, where they don't lose 30% of the cover price--but the MFN clause prevents that.

Or not. We don't know whether the MFN clause applies to "other retailers" or to "other retailers, including the publisher." We just don't know.

Here is an example:

“In the event of a price decline, or should you at any time, during the life of this agreement, sell the same materials or service, under similar quantity and delivery conditions, to ________, at prices below those stated herein, the agreement vendor will immediately extend such lower prices to ________.”

Insert, say, Amazon or any bookseller in the first blank and Apple in the next, and you'll see how the MFN clause operates.

Note that such a clause says nothing about direct sales by the supplier.