Who sells in a marketplace where someone else sets your price for you automatically without your approval? Amazon isn't a distributor in this case any more than the person who owns the tent at a fleamarket allows people to sell underneath it. In any case, Amazon's automatic algorithm to save themselves money from having to pay humans to do it nipped them this time and they owe the author. Do the right thing and settl…
I don't feel this is quite true. in the ebook-fleamarket example Amazon are also the person that handles any transactions under the tent, helps the customer find what they are looking for, designed the structure of the flea market, and is not insignificantly responsible for way in which a fair few people take their products home.