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Originally Posted by Fbone
We don't know the exact terms between Amazon and Amazon Books. Are they the same terms that Amazon has with B&T and Ingram or any other store that wishes to buy them?
Amazon is the wholesaler and distributor for their own published titles. As you say they are the only source. However, they do sell them to B&T from which B&N buys them and sells them at the same price as Amazon. It's even possible B&N buys from Amazon directly. The ABA may want the same terms as Amazon Books.
I don't think the ABA has a case either. However, I can see their concern. They don't want a B&M competitor who can sell books cheaper than their wholesaler/distributor.
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I only see one slight mishap in your logic: If even B&N sells the books at the same price as Amazon, then it might be reasonable to assume that perhaps Amazon sells the books under a agency pricing model. Even if the contract between Amazon and Amazon Books gives Amazon Books a bigger profit margin than other B&M stores, then the ABA still doesn't have a case. It is a contract negotiation - and Amazon Books can, for example, negotiate a higher profit margin in return for being forced to only and exactly buy books that are preselected.