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Books have undergone a massive transformation from a physical object to something entirely different: the electronic book, or “e-book”. This report provides background on e-book markets and examines various policy issues related to e-books. These include differing tax rates in countries between physical books and e-books, consumer lock-in to specific platforms, limitations on how users can read and share their purchased content, and a lack of transparency about how data on their reading habits is being used.