Usually I welcome competition because it results in lower prices for consumers. However, publishers are welcoming Google’s entry into the e-book space because Google will allow publishers to set consumer prices. Here are some excerpts from an article published today in the New York Times…—In discussions with publishers at the annual BookExpo convention in New York over the weekend, Google signaled its intent to introduce a program by that would enable publishers to sell digital versions of their newest books direct to consumers through Google. The move would pit Google against Amazon.com, which is seeking to control the e-book market with the versions it sells for its Kindle reading device.Google’s move is likely to be welcomed by publishers who have expressed concerns about Amazon’s aggressive pricing strategy for e-books. Amazon offers Kindle editions of most new best sellers for $9.99, far less than the typical $26 at which publishers sell new hardcovers. In early discussions, Google has said it will allow publishers to set consumer prices.He [Tom Turvey, director of strategic partnerships at Google] said that Google would allow publishers to set retail prices. Amazon lets publishers set wholesale prices and then sets its own prices for consumers. In selling e-books at $9.99, Amazon takes a loss on each sale because publishers generally charge booksellers about half the list price of a hardcover – typically around $13 or $14.Mr. Turvey said that Google would probably allow publishers to charge consumers the same price for digital editions as they do for new hardcover versions.—Do you think that publishers will eventually sever their partnerships with Amazon and partner will Google instead? If so, then do you think that the days of subsidized $9.99 e-books are numbered?

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