Amazon.com has been battling with publishers over its $9.99 price for electronic books. Now the online retailer is caving to publisher demands to go higher — signaling it will raise the price of some e-books to between $12.99 and $14.99.

Amazon's concession capped a remarkable showdown with Macmillan, one of the big six publishing houses. Amazon on Friday removed all books — digital and physical — published by Macmillan from its website, after the publisher made clear it was moving to a higher-price model on e-books.

But today, Amazon in a message to customers, backed down, saying "we will have to capitulate and accept Macmillan's terms because Macmillan has a monopoly over their own titles, and we will want to offer them to you even at prices we believe are needlessly high for e-books."

Amazon's tussle with Macmillan came just days after Apple unveiled its new iPad tablet computer, which allows for reading e-books and is viewed by many as a Kindle killer. Apple is working with Macmillan and at least four other major publishers on digital books for iPad — and is reportedly allowing them to set retail prices at $12.99 and $14.99.

So it looks like Amazon is conceding to Apple's new pricing model. Why did Amazon give in? Given Apple's clout — and the fact that many publishers are delaying the release of digital titles for Kindle to protest the $9.99 prices — Amazon may have been boxed into a corner.

What's Amazon's next move? Clearly the company is trying to whip up consumer anger about the higher e-book prices, saying customers will have to "decide for themselves whether they believe it's reasonable to pay $14.99 for a bestselling e-book. We don't believe that all of the major publishers will take the same route as Macmillan."

Here's the full message from Amazon on the Kindle Community page:

Macmillan, one of the "big six" publishers, has clearly communicated to us that, regardless of our viewpoint, they are committed to switching to an agency model and charging $12.99 to $14.99 for e-book versions of bestsellers and most hardcover releases.

We have expressed our strong disagreement and the seriousness of our disagreement by temporarily ceasing the sale of all Macmillan titles. We want you to know that ultimately, however, we will have to capitulate and accept Macmillan's terms because Macmillan has a monopoly over their own titles, and we will want to offer them to you even at prices we believe are needlessly high for e-books. Amazon customers will at that point decide for themselves whether they believe it's reasonable to pay $14.99 for a bestselling e-book. We don't believe that all of the major publishers will take the same route as Macmillan. And we know for sure that many independent presses and self-published authors will see this as an opportunity to provide attractively priced e-books as an alternative.

Kindle is a business for Amazon, and it is also a mission. We never expected it to be easy!

Thank you for being a customer.