[abhimir]

"As I understand it Amazon is demanding Hachette to sell their books at a certain price. This is highly unusual"

how is this different from Walmart deciding at what price it sells its suppliers' product. Almost all the retailers decide the final selling price of suppliers' products, that is the reason they are able to undercut mom&pop retail stores. Only exception on supplier side is Apple and to some extent Bose who have the brand leverage to dictate their prices to retailers.