The retail giant Amazon wields huge power over the book industry in the US, selling more than a third of new print books in the country.

A group of authors and booksellers are now calling for the US government to investigate that power, accusing the retailer of harming readers, and impoverishing the book industry.

The group Authors United says Amazon has the ability to make or break a book's success. Its founder Douglas Preston says authors have a lot to fear from Amazon, with the company engaging in aggressive and retaliatory behaviour against dissident authors.

And it's not just in America where authors are concerned about Amazon's power. David Day from the Australian Society of Authors says Amazon's loss leading policy is also harming the royalty incomes of Australian writers.

Amazon was contacted for comment, but did not provide a statement.