According to top Penguin executives, writes Wall Street Journal‘s Jeffrey Trachtenberg, the company has reached a detente with Amazon to conclude a price war that lasted about a month. The behemoth retailer, responding negatively to the agreement Penguin reached with competitor Apple, had turned off the Buy buttons on Penguin titles. The dispute centers on the fact that Apple’s business model is vastly different from Amazon’s, putting the latter at a competitive disadvantage. (For background, read Are We Capitulated Yet? Amazon Turns its Guns on Penguin.)

As part of the settlement, writes Publishers Lunch’s Michael Cader, Amazon “presumably” will switch to the same model as Apple, but if experience is any guide, in all likelihood that will result in higher e-book prices that may dampen customer enthusiasm. Penguin presumably understands that and is willing to trade curtailed sales for greater control over the way its books are sold through third parties.

RC