Ummm, no they can't...at least not in a free country... (except if you are in the military, then they have a bit more control). Unless the item in question is directly related to the learning objectives of the course they don't have the need, or authority, to define what device someone uses to read a book. They can dictate which book is used, and even which version of the book, but they can't say "you must use a kindle paperwhite 2 to read this book..."
Even if they did say that, the student has every right to ignore that instruction...
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