[AnthonyMouse]

The flaw in your argument is that they can't raise the price of that publisher's books in a market, they can only raise the price they charge on their own website. When Amazon raises their price for a particular book, that doesn't change the price it sells for anywhere else the book is available, and they aren't colluding with any of the other retailers to fix prices.

What they're doing is actually a demonstration of their lack of monopoly power. When they raise the price they charge for a book, any customers doing comparison shopping who want that book in particular will get it from a different retailer. If Amazon had monopoly power you would instead expect substantially all customers to either pay the higher price to Amazon or not buy the book from anyone.

The market characteristic that Amazon is taking advantage of is that if they raise the price for books from one publisher, it shifts impulse purchases from that publisher to another for customers looking through Amazon's website to find a new book to read. It's essentially the same strategy as putting the product of the publisher you don't like at the back of the store, or replacing mention of it in your promotional materials with mention of a competing product you also sell. The publisher cares a lot more than Amazon about which publisher's books Amazon sells more of, which provides Amazon with negotiating leverage against the publisher. All retailers have that leverage over their suppliers. It doesn't require monopoly power. Obviously being bigger gives you more leverage, but being big and having a monopoly are not the same thing.