Some context is useful. The IA, due to the coronavirus, is no longer lending digital books via "controlled digital lending." Now, an "unlimited number of people can check out the same book at the same time."
I can understand why the publishers would be upset. The IA need not go bankrupt for this. They may simply capitulate and revert this new feature. I am not convinced the publishers want to take the IA down; they merely want to threaten that unlimited concurrent checkouts should not be permitted (and perhaps, even more, that no books at all should be scanned).