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Price setting is not illegal, but when the top 6 publishers had meetings and other communications between them and Apple to decide how to change the pricing of ebooks, and it was the publishers' intent to raise the ebook prices to prevent cannibalization of their hardcover editions, and 5 of the publishers decided that on April 1, 2010, no retailer would be able to set their own prices, it became an anti-trust conspiracy. This has been discussed to death many times here.
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