Amazon and Penguin Agree Deal on Kindle Book Prices

Amazon.com and publisher Penguin Books have stuck a deal to allow Amazon Kindle users to purchase 150 Penguin titles previously unavailable on its online store.

An earlier fallout over mutually agreeable pricing caused Penguin to stop providing new titles for the Kindle.

Penguin demanded that its e-books be priced in a way that would be profitable for the company - Amazon wanted prices to be low in order to encourage users to shift from traditional books to their digital counterparts.

David Shanks, chief executive of Penguin Group, stated: "We have reached an agreement with Amazon and we are pleased that a full selection of our books will be available on the Kindle."

Amazon has priced the bestsellers at the standard rate of $9.99, but increased competition from other e-book readers led the company to alter prices according to the wishes of book publishers.

Rival reader Apple iBookstore, which sells titles for the company's iPad, prices its books more favourably for Penguin's profits, at $12.99 and $14.99.