Updated: Peter Brantley has posted about the news and it includes a comment from the Deputy Director of the ALA Washington Office.
From the OverDrive Digital Library Blog:
Last week Penguin sent notice to OverDrive that it is reviewing terms for library lending of their eBooks. In the interim, OverDrive was instructed to suspend availability of new Penguin eBook titles from our library catalog and disable “Get for Kindle” functionality for all Penguin eBooks [our emphasis]. We apologize for this abrupt change in terms from this supplier. We are actively working with Penguin on this issue and are hopeful Penguin will agree to restore access to their new titles and Kindle availability as soon as possible.
The blog post goes on to say that books already in your library’s catalog remain available and it is also possible to add additional copies.
More from Michael Kelley at Library Journal.
Includes text of a statement from Penguin Publishing.