>Made them available as a substitute for publisher-provided ebooks.
Is this true? A substitute is like for like. The IA lending provided them as a lend on the proviso that a physically purchased book is available and unused.
Its like saying that a Bookstore is competing with a Library. However the Library can only satisfy a small amount of Bookstore demand, and does so as a public good. They arent the same and the lending is downstream of a sale.
I guess you could make the argument that ebooks also have crippling anti consumer licenses so both are similar. But that just leads back to "The law should be different"
Publisher ebooks don't have to satisfy any tests. The publishers own the copyright on the work. They can generally be as anti-consumerist as they like. That's the law.