From Amazon Kindle(10/1/09)

"In an earlier posting, we said that we are working on improving the customer experience in the Kindle store for public domain titles like "Pride and Prejudice." Kindle customers often find it difficult to choose from the many different versions of the most popular titles. As a first step, we stopped accepting additional public domain titles.
Later this week, we will be removing many of the duplicate copies of the best selling public domain titles.
Some of you may disagree with the choice of titles we will be removing. If you feel that your version of a public domain title has significantly more value to customers compared to the ones we have chosen to keep for sale, please contact us at title-submission@... and we will review your title. Thanks for your patience as we continue to improve the Kindle Store."

Fear of Amazon, Google partnership to monopolize public domain publishing....

"There are recent news about Amazon (via Booksurge) and Google combining forces with some institutions (including college libraries) to offer classic books through Google books and Booksurge. There is some hint of monolistic tendencies of Google and Amazon joining forces in a continued partnership which possibly result in adverse consequences public domain publishing."

My comment...

As I have stated it in my book "the public domain publishing bible", the best policy is to offer a value added "twist" on free content. That, coupled with using Amazon via Createspace, would stabilize anyone's public domain business.

Be creative. I am fond of selections of short stories with possible editorials. Publishing newspaper articles as a collection.
Screenplay writing based on a book...illustrating an existing story. ..Or perhaps scanning some unknown work, hence reviving it is too, a way to be different.... Lazily offering yet another rendition of a book is lame...be original even with free content...