Amazon and Hachette resolve standoff with multi-year US deal

Amazon. com and Hachette Book Group have resolved their dispute over the sale of print and digital books with a multi-year agreement in the US, ending a standoff that cut off supplies of some of the publisher's offerings.

The deal will take effect early next year.

Hachette will set consumer prices of its e-books, and benefit from “better terms” when it delivers lower prices for readers, the companies said in a statement today. Seattle-based Amazon will also prominently feature Hachette books in promotions.

The world’s largest online retailer blocked pre-orders for some of Hachette’s books earlier this year amid negotiations. Amazon sought lower prices, arguing that the move would boost sales and result in bigger total sales. Hachette resisted the move and gained the backing of many of its authors, who said the dispute was causing them to lose income.

“The new agreement will benefit Hachette authors for years to come,” Michael Pietsch, Hachette Book Group’s chief executive, said in the statement.

Amazon dominates e-book sales with 60 per cent of the market, according to Forrester Research. The company also helped pioneer the e-book market with the introduction of the Kindle device in 2007.

- Bloomberg