The IA blatantly stole the work of thousands of people. They saw a problem and wanted to act - laudable. They could have done that be arranging to buy unique copies of each book they lent out. Or they could have tried to come to some agreement with the publishers. Or a bunch of other alternatives.
They didnt.
They stole the work and thankfully there is some players with enough clout in the market to do something about it.
If the big publishers ever do go away it will be a bad time for those like me who are never going to make enough revenue from our works to warrant a court proceeding while our works are stolen.