World’s leading Internet retailer Amazon. com Inc. announced on Sunday that it would raise prices on some of its e-books, ending a dispute over prices with the publisher, Macmillan.

Until now, Amazon. com had been charging $9.99 for the e-book version of nearly all new releases and best sellers.

Under the new terms and conditions, the publisher will be able to set the prices of e-books individually. Most of the new releases now are expected to cost between $12.99 and $14.99. Retailer will receive a commission of 30 per cent, under the proposal.

Amazon said that they surrendered to Macmillan because the publisher had monopoly over its own titles. However, it added that the prices wanted by the publisher were unnecessarily high for e-books.

Seattle-based Amazon. com sells digital books which can be viewed on a number of devices such as Kindle e-reader.

The recent dispute between Amazon and Macmillan has highlighted prevailing tension between the retailers and publishers over the pricing models.

Some publishers are unhappy over pricing models on the Kindle and are demanding more control over how much they charge.