Some commentary from Cory Doctorow about the Amazon and Hachette fight that I've posted a few links to over the last few weeks. This touches on the DRM nightmare that enabled all this arm twisting. And everyone knows how much I love DRM!
In a sane world, Hachette would have a whole range of tactics available to it. Amazon's ebook major competitors – especially Apple and Google – have lots of market clout, and their customers are already carrying around ebook readers (tablets and phones). Hachette could easily play hardball with Amazon by taking out an ad campaign whose message was, "Amazon won't sell you our books – so we're holding a 50% sale for anyone who wants to switch to buying ebooks from Apple, Google, Kobo or Nook."
[I]t is precisely because Hachette has been such a staunch advocate of DRM that it cannot avail itself of this tactic. Hachette, more than any other publisher in the industry, has had a single minded insistence on DRM since the earliest days. It's likely that every Hachette ebook ever sold has been locked with some company's proprietary DRM, and therein lies the rub.
Read the rest of the tricky explanation here: http://www.theguardian.com/technology/2014/jun/20/how-amazon-holding-hachette-hostage