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By asking for the publisher to bear part of the discounting Amazon will be able to discount other retailers out of business.
For example if say Amazon has discounted a book to $9 and so does another retailer. Amazon might still be making a profit as part of the discount is borne by the publisher where as another retailer won't. Once all the other retailers are run out of business Amazon can then squeeze the publishers for more. The only other alternative for publishers would be to give similar discount to other retailers which would hurt publishers bottom line so they are fighting this.
To me the best option for publishers is to make their own store sell the books and ebooks without drm to customers directly at wholesale prices. But most publishers are to slow to get with the times
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