Publishers And Booksellers See A ‘Predatory’ Amazon ⇥

Lynn Neary:

Publishers have a problem when it comes to discussing Amazon: They may fear its power, but they are also dependent on it, because like it or not, Amazon sells a lot of books. But lately, the grumbling about Amazon has been growing louder, with some in the book industry openly describing Amazon’s tactics as “predatory.”

Publishers have long complained about Amazon’s pricing policies; it sold e-books at cut-rate prices in order to win customers for the Kindle. Now, explains Joe Wikert, general manager and publisher at O’Reilly Media, Amazon is undercutting competitors by selling e-readers, like the new Kindle Fire, at a loss.

Massive companies with the power to sell products at lower prices are always going to be a problem for smaller retailers. But it’s up to them to stay nimble and work around these limitations.