Assume the following facts: Under the wholesale model of book selling wherein the retailer decides on the final price to consumers, Amazon priced Kindle e-books at a retail price of $9.99, which for some books was below Amazon's cost and for other books was above Amazon's cost. Amazon initially obtained a 90% market share of the e-book market through the Kindle.

After the release of the iPad, Apple entered the e-book market under the agency model of book selling wherein the retailer sells books at the price negotiated between the publisher and the retailer, and the retailer keeps 30% of the price. Apple negotiated separate contracts with five large publishers to sell e-books at a retail price of $14.99. The five publishers then insisted that Amazon also sell e-books at $14.99. After the release of the iPad, Amazon's market share of the e-book market declined to 65%.

1. If the FTC or DOJ sue for an alleged violation of antitrust law, what would be the government's strongest legal claim, and against whom? In other words, whom should the government sue, and for what?