The Huffington Post posted this article about the Amazon/BookSurge POD kerfuffle. It’s a good description of the issue from the point of view of a small publisher and/or self-publisher.
Also,it would seem that the actions taken by The Authors Guild and others concerned with the legal aspects of Amazon’s new policy are having an effect.
The Washington State Office of the Attorney General has issued a statement that says, in part:
April 8, 2008
The Washington Attorney General’s Antitrust Division has received several inquiries and concerns regarding the new “print on demand” or “POD” policy recently implemented by Amazon.com. Individuals who have contacted our office claim that Amazon is engaging in “monopolistic practices.”
As with all complaints regarding a business, we have advised Amazon.com of these concerns and have asked the company to respond to us. In the meantime, the Antitrust Division is conducting an initial review of the marketplace and will respond more fully once that review is complete.
In order for the Attorney General’s Office or another enforcement agency to take action on an antitrust law violation, a court must be convinced that a company has attempted to monopolize a relevant market or is attempting to exclude others from a market it has already monopolized. The relevant market is judged not only in terms of what products are in question, but the geographic service area in which competitors compete.
If it is determined that the markets involved are national in scope, it may be more appropriate to refer this matter to one of the federal antitrust agencies for review.
I know next to nothing about antitrust law so I won’t even speculate as to the outcome.