Penguin has offered to drop its existing agency agreements and let retailers set the retail price of its eBooks in a move to settle with EU regulators.

The European Commission revealed the details in a press release:

In the proposed commitments, Penguin offers to terminate existing agency agreements and refrain from adopting price MFN clauses for five years. In case Penguin would enter into new agency agreements, retailers would be free to set the retail price of e-books during a two-year period, provided the aggregate value of price discounts granted by retailers does not exceed the total annual amount of the commissions that the retailer receives from the publisher.

Penguin follows Simon & Schuster, Harper Collins, Hachette, and Holtzbrinck who made similar deals in December 2012. (Via The Telegraph UK).