I comment on this post...
Boycotts and courts are not the answer.
The answer is age old. It's called competition. The barriers to entry are not too high (a well done website.) But you do have to become competitive. Which means...
What does Amazon do right? First it's a brand. To compete, you need to develop a brand (which will not happen over night.)
Then realize you have two sets of customers: authors and readers. What do each need and want?
Readers need to be able to find what they want which includes easy purchase of a reader device. No-DRM. Reader reviews and suggestions. They want to download, read and share without the need to become a tech. wizard.
Authors need editing, cover design, publicity, etc., without a large upfront cost. Let the author set the price of his work and give a flat commission to the brand (20%?)
Keep it simple for everybody. Compete.
Update: I'd suggest the publishers in this story and others get together now and start to establish a competitive brand. They wouldn't have to give up any of their current business, they could run the website in parallel.