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Amazon and Hachette bury the hatchet

Hachette Book Group, France’s largest publishing company, has reached a multi-year agreement with Amazon after months of bitter fighting.

The agreement for e-book and print book sales will see the end of squabbles between writers and publishers against the world’s biggest online retailer.

The new terms, which will take effect early in 2015 will regulate consumer prices, said Hachette.

And Amazon, which stopped selling some Hachette’s books, will continue selling everything from Hachette’s catalogue.

The dispute started earlier in 2014 when Amazon and Hachette couldn’t agree on who would set the prices for e-books, as well as on the cut Amazon would take from the sales.

During the negotiations Amazon delayed deliveries and blocked the pre-ordering options for some of the more popular titles, including J.K. Rowling’s The Silkworm, written under the alias Robert Galbraith.

Lagardere Group, the owner of Hachette, says that about 60 per cent of all Hachette’s digital sales come from Amazon.

Amazon says it wanted Hachette to lower the prices. The agreement includes “specific financial incentives for Hachette to deliver lower prices,“ said David Nagar, Amazon Vice President of Kindle in a statement.

Lagardere executives said during its quarterly earnings presentation the new deal with Amazon will bring a "significant lift" in book sales during the holiday season.

Hachette Book Group CEO Michael Pietsch said in a statement that the new contract will benefit Hachette for "years to come" and that it gives the publisher "enormous marketing capability."