I've never liked apple because of its unfair business practices and this is one example. Apple whether you like it or not is a major player here so you have a large incentive to toe their line.
This will only encourage piracy as it drives up book costs.
Oh, apple ebooks have DRM by the way.
in reference to:
"Apple requires that if you sell books through them that you absolutely cannot sell them for less through anyone else. To my understanding Amazon also requires this, so Apple and Amazon prices should be identical in the future, but Amazon doesn't force prices to end in .99. What this means is that an e-book that the author was quite happy to sell for $2.29 or $2.49 is now going to cost $2.99 from everybody."
- Slashdot Apple Story | Apple Raises E-book Prices For Everyone (view on Google Sidewiki)