Amazon and Hachette announce multi-year agreement after bitter fight over future of publishing industry

Hachette accused Amazon of delaying and hiding their titles, while the online retailer claimed the publisher's pricing strategy was detrimental to readers

Jeff Bezos poses next to Fire phone (AP)

The nasty monthslong standoff between Amazon and Hachette Book Group is finally coming to an end after the online retailer and the publisher announced a multi-year agreement on Thursday.

With e-book revenues reportedly the key issue, Amazon had removed pre-order tags for Hachette books, reduced discounts and slowed deliveries, hurdles that should be gone well before the crucial holiday shopping season.

"This is great news for writers," Hachette CEO Michael Pietsch said in a statement. "The new agreement will benefit Hachette authors for years to come. It gives Hachette enormous marketing capability with one of our most important bookselling partners."

David Naggar, an Amazon vice president, said the company was pleased that the agreement "includes specific financial incentives for Hachette to deliver lower prices, which we believe will be a great win for readers and authors alike."

The agreement takes effect early next year. Restrictions on Hachette books are being lifted immediately, according to the announcement, although delays on Carlos Santana's "The Universal Tone," J.D. Salinger's "Nine Stories" and other works remained in place two hours after the news broke.

The Amazon-Hachette dispute had dominated publishing headlines and conversations for much of the year. James Patterson, John Green and hundreds of authors from various publishers had condemned Amazon, and Hachette author Stephen Colbert mocked the online retailer, which prides itself on customer service.

Meanwhile, Hugh Howey, J.A. Konrath and other writers published by Amazon had blamed Hachette and praised Amazon for keeping prices down and allowing authors unhappy with traditional publishers to release their work elsewhere.

Amazon and Hachette had exchanged increasingly hostile press statements and neither side seemed to benefit.

Hachette sales on Amazon.com, the country's biggest bookseller and dominant e-book seller, had dropped sharply. Amazon, meanwhile, issued a disappointing earnings report last month, although the impact of Hachette books was unclear.

Douglas Preston, a Hachette writer who had organised a public campaign against Amazon, wrote in an email Thursday that he was relieved by the news and hoped that "if disagreements arise in the future between Amazon and publishers, Amazon will never again seek to gain leverage by sanctioning books and hurting authors."

Howey called the announcement "great news" and wrote in an email that he was "glad Hachette stopped this crazy campaign which only hurt itself and its authors."

Hachette was among five publishers sued in 2012 by the U.S. Justice Department for allegedly fixing e-book prices. The publishers, who had worried that Amazon was charging too little for e-books, settled and were required to negotiate new deals with Amazon and other retailers.

Under the new agreement, Hachette will set prices for e-books, "and will also benefit from better terms when it delivers lower prices for readers."

Amazon last month reached a multiyear deal with Simon & Schuster, another publisher that was sued in 2012 and eventually settled. Like Hachette, Simon & Schuster will set e-book prices, a top priority for publishers. The terms also included a priority for Amazon: "financial incentive for Simon & Schuster to deliver lower prices for readers."

Precise numbers were not announced for the Hachette or Simon & Schuster deals, but Howey noted in his email that for authors who self-publish through Amazon the retailer takes a higher percentage of revenues when e-books are above a certain price.

Thursday's news raised expectations that agreements with the remaining major New York publishers, HarperCollins, Macmillan and Penguin Random House, can be achieved without disruption.

Additional reporting AP