In the above video Wall Street Journal reporter Jeffrey A. Trachtenberg and AllThingsD’s Peter Kafka discuss the Connecticut Attorney General’s investigation into eBook pricing.

As they point out in the video, publishers are likely not colluding and are instead forming more partnerships with more eBook retailers. And with more retailers getting into the eBook space, comes more competition. “Uniform prices are creating more competition, not less,” says Trachtenberg.

And while the major publishers are selling pretty uniformly selling eBooks at $9.99-$14.99, we have seen a lot of testing from smaller shops and self-published authors at $1.99, $2.99 and $4.99. Price fixing may not be the issue the Attorney General is making it out to be. What do you think?