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The chief executive of Harper Collins told the London Book Fair that while they were all talking about Google, publishers should be more concerned by Amazons plans.

'They are moving into the publishing space and we ought to be very mindful of that,' Victoria Barnsley said during a panel discussion.

Amazon has recently hired senior publishing executives, she said, and has

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made approaches to book agencies.

Amazon described itself as a 'friend to the publishing industry' and pointed out that it has helped publishers increase sales of their back catalogue titles. It also revealed that its new opt-in service for publishers, that allows readers to view the contents of a book before they buy, has increased sales by seven per cent in the US.

While there is little that Harper Collins can do as long as Amazon proves a lucrative market for its books, the same cannot be said for retailers who use Amazon to provide their online space.

Waterstone's is a high-profile example, but the CEO of HMV, which owns the bookshop chain, suggested that it may soon set up its own e-commerce site.

'We are having quite an open debate with Amazon whether that is necessarily fulfilling the aspirations we've got in the online space,' Alan Giles told Reuters. He explained that the benefits of partnering with Amazon - primarily the cost savings - no longer apply as the cost of setting up and running sites has fallen.

Amazon declined to comment on its relationship with HMV.