Apple iPad/iBooks stokes electronic book war between Macmillan and Amazon

The announcement of the Apple iPad and its associated iBooks ebook store appears to be stirring things up in the world of electronic books.

Over the weekend, Amazon.com pulled all Macmillan books from its US electronic bookstore, apparently over Macmillan's demands to increase the pricing of its ebooks.

Macmillan wanted to sell its bestsellers as ebooks on Amazon.com for between $12.99 and $14.99. Macmillan is one of the five publishers Apple announced would provide titles for its iBooks store for the iPad when it launches, with pricing per book at $14.99.

Amazon apparently refused to renegotiate at a meeting on Thursday and by Friday had pulled all Macmillan content from its electronic book site. However, Amazon has now announced it will stock Macmillan books at the price demanded, capitulating to the publishing giant.

In a statement on its Kindle ebook reader community site, the Amazon Kindle Team said: "Ultimately we will have to accept Macmillan's terms because Macmillan has a monopoly over their own titles and we will want to offer them to you even at prices we believe are needlessly high for e-books. Amazon customers will at that point decide for themselves whether they believe it's reasonable to pay $14.99 for a best-selling ebook."

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